FedEx Statistical Book by A9Not2G

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									                     FedEx Corp. Condensed Consolidated Balance Sheets
                                    FY 1998 – FY 2005

May 31    .




In millions (except share data)
                                                                                                                                       1
                                                                                FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
ASSETS

Current Assets:
  Cash and cash equivalents                                                      $ 229        $ 325     $   68    $ 121     $ 331     $ 538     $ 1,046    $ 1,039
  Other current assets:
     Receivables, less allowances                                                  1,943       2,153     2,547     2,506     2,491     2,627      3,027     3,297
     Spare parts, supplies and fuel, less allowances                                 365         292       255       269       251       228        249       250
     Deferred income taxes                                                           233         291       318       488       469       416        489       510
     Prepaid expenses and other                                                      110          80        97       117       123       132        159       173
        Total other current assets                                                 2,651       2,816     3,217     3,380     3,334     3,403      3,924     4,230
       Total current assets                                                        2,880       3,141     3,285     3,501     3,665     3,941      4,970     5,269

Property and Equipment, at Cost:
   Aircraft and related equipment                                                 4,057        4,557     4,960     5,313     5,843     6,624      7,001     7,610
   Package handling and GSE and vehicles                                          3,425        3,859     4,204     4,621     4,866     5,013      5,296     5,360
   Computer and electronic equipment                                              2,163        2,363     2,417     2,637     2,816     3,180      3,537     3,893
   Other                                                                          2,819        2,941     3,161     3,841     4,051     4,200      4,477     5,154
                                                                                 12,464       13,720    14,742    16,412    17,576    19,017     20,311    22,017
   Less accumulated depreciation and amort.                                       6,529        7,161     7,659     8,312     9,274    10,317     11,274    12,374
       Net property and equipment                                                  5,935       6,559     7,083     8,100     8,302     8,700      9,037     9,643

Other Long-Term Assets:
   Goodwill                                                                             356       344       501    1,052     1,063     1,063      2,802     2,835
   Other assets                                                                         515       604       658      739       782     1,681      2,325     2,657
       Total other long-term assets                                                     871       948    1,159     1,791     1,845     2,744      5,127     5,492
                                                                                 $9,686 $10,648 $11,527 $13,392 $13,812 $15,385                 $19,134 $20,404

LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current Liabilities:
  Current portion of long-term debt                                              $ 258        $   15    $    7    $ 221     $    6    $ 308      $ 750     $ 369
  Other current liabilities:
     Accrued salaries and employee benefits                                          612         741       755       700       739       724      1,062     1,275
     Accounts payable                                                              1,145       1,134     1,121     1,256     1,133     1,168      1,615     1,739
     Accrued expenses                                                                789         895     1,008     1,073       975     1,135      1,380     1,351
        Total other current liabilities                                            2,546       2,770     2,884     3,029     2,847     3,027      4,057     4,365
       Total current liabilities                                                   2,804       2,785     2,891     3,250     2,853     3,335      4,807     4,734

Long-Term Debt, Less Current Portion                                               1,385       1,360     1,776     1,900     1,800     1,709      2,837     2,427
Deferred Income Taxes                                                                   274       293       345     508         599     882       1,106     1,206
Other Long-Term Liabilities                                                        1,262       1,547     1,730     1,834     2,015     2,171      2,348     2,449

COMMON STOCKHOLDERS' INVESTMENT:
   Common stock $0.10 par value;
      800 million shares authorized                                                   15          30        30        30        30        30         30        30
   Additional paid-in capital                                                        993       1,061     1,079     1,120     1,144     1,088      1,079     1,213
   Retained earnings                                                               2,999       3,616     4,295     4,880     5,465     6,250      7,001     8,363
   Accumulated other comprehensive loss                                              (27)        (25)      (36)      (56)      (53)      (30)       (46)      (17)
                                                                                   3,980       4,682     5,368     5,974     6,586     7,338      8,064     9,589
   Less treasury stock, at cost, and deferred comp.                                   19          19       583        74        41        50         28         1
       Total common stockholders' investment                                       3,961       4,663     4,785     5,900     6,545     7,288      8,036     9,588
                                                                                 $9,686 $10,648 $11,527 $13,392 $13,812 $15,385                 $19,134 $20,404

1 - Financial information for FedEx Kinko's has been included from February 12, 2004.


Differences may result due to rounding.


2 / FedEx Historical Stat Book
             FedEx Corp. Condensed Consolidated Statements of Cash Flows
                                FY 1998 – FY 2005

Years ended May 31        .




In millions
                                                                              FY 1998       FY 1999       FY 2000      FY 2001    FY 2002     FY 2003     FY 20042 FY 2005




Operating Activities:
  Income from continuing operations                                              $ 498         $ 631         $ 688      $ 584      $ 710        $ 830       $ 838    $1,449
  Noncash charges:
    Depreciation and amortization                                                   964         1,035         1,155      1,276      1,364        1,351      1,375     1,462
    Other, net                                                                       95            19            48        216        209          454        141       200
  Changes in operating assets and liabilities, net                                   48            87          (266)       (32)       (55)        (764)       666         6

Net cash provided by operating activities                                         1,605         1,772         1,625      2,044      2,228        1,871      3,020     3,117

Investing Activities:
     Capital expenditures1                                                       (1,880)       (1,770)       (1,627)    (1,893)    (1,615)      (1,511)    (1,271)   (2,236)
     Proceeds from:
       Sale-leaseback transactions                                                  323            81             –        237          –            –          –         –
       Reimbursements of A300 and MD11 deposits                                     107            67            24          –          –            –          –         –
       Asset dispositions                                                           162           196           165         37         27           22         18        12
     Business acquisitions, net of cash acquired                                      –             –          (257)      (477)       (35)           –     (2,410)     (122)
     Other, net                                                                       –           (23)          (13)       (17)        11           (1)         1        (2)
Net cash used in investing activities                                            (1,288)       (1,449)       (1,708)    (2,113)    (1,612)      (1,490)    (3,662)   (2,348)

Financing Activities:
   Principal payments on debt                                                      (534)         (269)         (115)      (650)      (320)         (10)      (319)     (791)
   Proceeds from debt issuances                                                     267             –           518        744          –            –      1,599         –
   Proceeds from stock issuances                                                     34            50            16         29         88           81        115        99
   Dividends paid                                                                    (8)            –             –          –          –          (60)       (66)      (84)
   Purchases of treasury stock                                                       (7)           (8)         (607)         –       (177)        (186)      (179)        –
   Other, net                                                                         1            (1)           14         (1)         3            1          –         –

Net cash (used in) provided by financing activities                                (247)         (228)         (174)      122        (406)        (174)     1,150      (776)

Cash provided by (used in) continuing operations                                    70            96          (257)        53        210          207         508        (7)
Cash used in discontinued operations                                                (2)            –             –          –          –            –           –         –
Cash and cash equivalents at beginning of period                                   161           229           325         68        121          331         538     1,046
Cash and cash equivalents at end of period                                       $ 229         $ 325         $ 68       $ 121      $ 331        $ 538      $1,046    $1,039




1 - Excludes equivalent capital of $459 million, $561 million and $365 million in 1998, 1999 and 2000, respectively.
2 - Financial information for FedEx Kinko's has been included from February 12, 2004.

Differences may result due to rounding.


                                                                                                                                             FedEx Historical Stat Book / 3
                             FedEx Corp. Annual Consolidated Statements of Income
                                             FY 1998 – FY 2005
Years ended May 31
In millions, except EPS and FTEs
                                                                             FY 1998          FY 1999          FY 2000              FY 20012     FY 2002          FY 2003         FY 20044     FY 20057
Revenue:
  FedEx Express segment                                                       $13,255          $13,979          $15,096             $15,645       $15,438          $16,467        $17,497      $19,485
  FedEx Ground segment                                                          2,000            2,162            2,345               2,565         2,918            3,581          3,910        4,680
  FedEx Freight segment1                                                            –                –                –                 993         2,253            2,443          2,689        3,217
  FedEx Kinko's segment5                                                            –                –                –                   –             –                –            521        2,066
                       5
  Other & eliminations                                                            618              632              816                 426            (2)              (4)            93          (85)
     Total Revenue                                                             15,873           16,773           18,257              19,629        20,607           22,487         24,710       29,363
Operating Expenses:
  Salaries and employee benefits                                                6,647            7,088            7,598               8,263          9,099            9,778           10,728    11,963
  Purchased transportation                                                      1,482            1,538            1,675               1,713          1,825            2,155            2,407     2,935
                           6
  Rentals and landing fees                                                      1,304            1,396            1,539               1,650          1,780            1,803            1,918     2,299
  Depreciation and amortization                                                   964            1,035            1,155               1,276          1,364            1,351            1,375     1,462
  Fuel6                                                                           727              605              919               1,163          1,146            1,396            1,531     2,317
  Maintenance and repairs6                                                        874              959            1,101               1,170          1,240            1,398            1,523     1,695
  Airline stabilization                                                             –                –                –                   –           (119)               –                –        48
  Business realignment costs                                                        –                –                –                   –              –                –              435         –
  Other6                                                                        2,864            2,989            3,049               3,323          2,951            3,135            3,353     4,173
     Total Operating Expenses                                                  14,862           15,610           17,036              18,558         19,286           21,016           23,270    26,892
Operating Income (Loss):
  FedEx Express segment                                                            837              871                 899             836            801              783              629     1,414
  FedEx Ground segment                                                             176              213                 203             113            337              494              522       604
  FedEx Freight segment1                                                             –                –                   –              61            185              193              244       354
  FedEx Kinko's segment5                                                             –                –                   –               –              –                –               39       100
  Other & eliminations5                                                             (2)              79                 119              61             (2)               1                6        (1)
     Total Operating Income                                                      1,011            1,163               1,221           1,071          1,321            1,471            1,440     2,471
Other Income (Expense):
   Interest, net                                                                  (124)             (98)              (106)            (144)          (139)             (118)          (116)      (139)
   Other, net                                                                       13               (4)                23                –            (22)              (15)            (5)       (19)
      Total Other Income (Expense)                                                (111)            (102)               (83)            (144)          (161)             (133)          (121)      (158)
Income Before Income Taxes                                                         900            1,061               1,138             927          1,160            1,338            1,319     2,313
Provision for Income Taxes                                                         402              430                    450          343            435               508            481        864
Income from Continuing Operations                                                  498              631                    688          584            725               830            838      1,449
Income from Discontinued Operations,
   Net of Income Taxes                                                                5                –                        –         –                –                –             –          –
Cumulative Effect of Change in Accounting                                             –                –                        –         –             (15)                –              –         –
Net Income                                                                      $ 503            $ 631            $ 688               $ 584         $ 710            $ 830            $ 838     $1,449
Diluted Earnings Per Share:
   Continuing operations                                                         $1.67            $2.10               $2.32           $1.99          $2.39            $2.74            $2.76     $4.72
   Discontinued operations                                                        0.02                –                   –               –              –                –                –         –
   Cumulative Effect of Accounting Change                                            –                –                   –               –          (0.05)               –                –         –
      Net Diluted Earnings Per Share                                             $1.69            $2.10               $2.32           $1.99          $2.34            $2.74            $2.76     $4.72
Avg Common and Common Equivalent Shares                                            298              301                    296          293            303               303            304        307
SELECTED STATISTICS
Operating Margin                                                                 6.4%             6.9%                6.7%             5.5%           6.4%             6.5%            5.8%       8.4%
Pretax Margin                                                                    5.7%             6.3%                6.2%             4.7%           5.6%             5.9%            5.3%       7.9%
Return on Assets3                                                                5.4%             6.2%             6.2%                4.7%          5.2%             5.7%             4.9%       7.3%
Return on Equity3                                                               13.5%            14.6%            14.6%               10.9%         11.4%            12.0%            10.9%      16.4%
FedEx Corp. Average FTEs                                                      150,823          156,386          163,324             176,960       184,953          190,918        195,838      215,838
1 - The FedEx Freight segment includes the operations of FedEx Freight West from December 1, 2000 and FedEx Freight East from January 1, 2001. Prior to December 1, 2000,
    FedEx Freight West results are included in Other.
2 - FY01 includes a $124 million charge associated with curtailing certain aircraft modification and development programs and reorganizing operations at FedEx Supply Chain       .




    Services. Of the total, $102 million was incurred at FedEx Express and $22 million was incurred at FedEx Supply Chain Services.
3 - Return on Assets and Return on Equity for the current year-to-date are calculated on a rolling four quarter basis.
4 - FY04 includes $435 million ($270 million, net of tax, or $0.89 per diluted share) of business realignment costs. FY04 also includes a $37 million, net of tax, or $0.12 per
    diluted share benefit related to a favorable ruling on a tax case and the reduction of the company's effective tax rate.
5 - The FedEx Kinko's segment was formed in the fourth quarter of fiscal 2004. Results from the February 12, 2004 date of acquisition through February 29, 2004 are
    included in 'Other & eliminations' (approximately $100 million of revenue and $6 million of operating income).          .




6 - Certain prior period amounts have been reclassified to conform to the current period's presentation.   .




7 - Results for fiscal 2005 include a $12 million or $0.04 per diluted share benefit from an income tax adjustment.    .




Differences may result due to rounding.

4 / FedEx Historical Stat Book
                       FedEx Corp. Quarterly Consolidated Statements of Income
                                        FY 1998 – FY 1999
Years ended May 31
In millions, except EPS and FTEs

                                                                     FY 1998                                                                 FY 1999
                                                        FIRST   SECOND     THIRD FOURTH                                         FIRST   SECOND     THIRD FOURTH
                                                       QUARTER QUARTER QUARTER QUARTER                                         QUARTER QUARTER QUARTER QUARTER

Revenue:
  FedEx Express segment                                      $3,297            $3,299            $3,233           $3,426             $3,417            $3,482            $3,431              $3,649
                       3
  FedEx Ground segment                                          419               487               583              511                509               555               525                 573
  Other & eliminations                                          150               156               171              141                157               172               142                 161
     Total Revenue                                            3,866             3,942             3,987            4,078              4,083             4,209             4,098               4,383
Operating Expenses:
  Salaries and employee benefits                                 1,637          1,615             1,688             1,707              1,748             1,757             1,762               1,821
  Purchased transportation                                         329            368               415               370                371               397               376                 394
  Rentals and landing fees                                         292            336               347               329                331               348               364                 353
  Depreciation and amortization                                    230            237               250               247                250               252               264                 269
  Fuel                                                             179            186               191               171                149               154               146                 156
  Maintenance and repairs                                          213            210               217               234                248               236               238                 237
  Other1,4                                                         683            701               783               697                700               728               797                 764
     Total Operating Expenses                                    3,563          3,653             3,891             3,755              3,797             3,872             3,947               3,994
Operating Income (Loss):
  FedEx Express segment                                           264              214                98              261                219               251                95                306
  FedEx Ground segment                                             35               57                37               47                 43                62                43                 65
                       1
  Other & eliminations                                              4               18               (39)              15                 22                24                14                 19
     Total Operating Income                                       303              289                96              323                284               337               152                390
Other Income (Expense):
   Interest, net                                                   (29)            (32)              (34)              (29)               (25)             (25)              (25)                (23)
   Other, net4                                                      10               –                 2                 1                 (4)               1                (6)                  5
      Total Other Income (Expense)                                 (19)            (32)              (32)              (28)               (29)             (24)              (31)                (18)
Income Before Income Taxes                                        284              257                64              295                255               313               121                372
Provision for Income Taxes2,5                                     120              107                51              124                106               130                43                151
Income from Continuing Operations                                 164              150                13              171                149               183                78                221
Income from Discontinued Operations,
   Net of Income Taxes                                               –                –                 5                –                  –                 –                 –                  –
Net Income                                                       $ 164          $ 150             $ 18              $ 171              $ 149             $ 183             $ 78                $ 221
Basic Earnings Per Share:
   Continuing operations                                         $0.56          $0.51             $0.04             $0.58              $0.51             $0.62             $0.26               $0.74
   Discontinued operations                                           –              –              0.02                 –                  –                 –                 –                   –
      Net Basic Earnings Per Share                               $0.56          $0.51             $0.06             $0.58              $0.51             $0.62             $0.26               $0.74
Weighted Avg. Common Shares                                       293              293               293              295                295               295               296                298
Diluted Earnings Per Share:
   Continuing operations                                         $0.55          $0.50             $0.04             $0.57              $0.50             $0.61             $0.26               $0.73
   Discontinued operations                                           –              –              0.02                 –                  –                 –                 –                   –
      Net Diluted Earnings Per Share                             $0.55          $0.50             $0.06             $0.57              $0.50             $0.61             $0.26               $0.73
Avg Common and Common Equiv. Shares                               297              299               298              299                299               298               302                304

SELECTED STATISTICS
Operating Margin                                                 7.8%            7.3%              2.4%             7.9%               7.0%              8.0%              3.7%                8.9%
Pretax Margin                                                    7.3%            6.5%              1.6%             7.2%               6.2%              7.4%              3.0%                8.5%
FedEx Corp. Average FTEs                                    147,745          150,888           152,239           152,580            153,369           156,701           158,155          157,406


1 - FedEx Freight West Q3 FY98 results include a one-time $16 million gain on the sale of certain assets.
2 - FY98's rates of 79.8% and 45.9% for the third quarter and YTD periods reflect certain one-time Caliber transactions which were non-deductible for federal and state income tax purposes.
    Excluding the impact of those non-deductible costs, the effective tax rates were 39.0% and 41.3%.
3 - Included in Q3 FY99 FedEx Ground revenue was approximately $7 million resulting from a one-time change in revenue recognition for in-transit shipments.
4 - FedEx Express incurred approximately $81 million of operating expenses and $10 million of bank fees and negative arbitrage on borrowings in Q3 FY99 as part of the contingency
    plans in connection with the FedEx pilot negotiations.
5 - FedEx Corp's Q3 FY99 quarterly and year-to-date effective tax rates are lower than the comparable periods, primarily due to the combination of stronger than expected YTD results from
    international operations and lower worldwide income taxes on foreign earnings. This change increased Q3 and Q4 FY99 earnings per share by $0.02 and $0.01, respectively, and
    Q3 and Q4 FY99 YTD by $0.02 and $0.04, respectively.     .




Unaudited. Differences may result due to rounding.


                                                                                                                                                       FedEx Historical Stat Book / 5
                       FedEx Corp. Quarterly Consolidated Statements of Income
                                         FY 2000 – FY 2001
Years ended May 31
In millions, except EPS and FTEs

                                                                               FY 2000                                                                   FY 2001
                                                        FIRST             SECOND     THIRD                  FOURTH              FIRST               SECOND     THIRD                     FOURTH
                                                       QUARTER           QUARTER QUARTER                    QUARTER            QUARTER             QUARTER QUARTER                       QUARTER


Revenue:
  FedEx Express segment                                      $3,587            $3,736            $3,758            $4,015                $3,944         $4,010           $3,811             $3,880
  FedEx Ground segment                                          552               600               563               630                   623            670              613                659
                         2
  FedEx Freight segment                                           –                 –                 –                 –                     –              –              415                578
                       2
  Other & eliminations                                          181               234               197               204                   212            215                –                 (1)
     Total Revenue                                            4,320             4,570             4,518             4,849                 4,779          4,895            4,839              5,116
Operating Expenses:
  Salaries and employee benefits                               1,831            1,874             1,926             1,967                 1,995          2,000             2,098             2,170
  Purchased transportation                                       390              438               417               430                   435            439               412               427
  Rentals and landing fees                                       367              393               387               392                   390            407               418               435
  Depreciation and amortization                                  277              285               294               299                   303            310               326               337
  Fuel4                                                          185              225               257               252                   250            313               310               290
  Maintenance and repairs                                        255              278               271               297                   310            278               270               312
  Other3,4                                                       731              772               760               786                   785            803               814               921
     Total Operating Expenses                                  4,036            4,265             4,312             4,423                 4,468          4,550             4,648             4,892
Operating Income:
  FedEx Express segment3                                         209               212              143               335                  257             267               156              156
  FedEx Ground segment3                                           47                59               35                62                   34              48                 8               23
  FedEx Freight segment2                                           –                 –                –                 –                    –               –                22               39
  Other & eliminations2                                           28                34               28                29                   20              30                 5                6
     Total Operating Income                                      284               305              206               426                  311             345               191              224

Other Income (Expense):
   Interest, net                                                 (21)              (27)              (30)              (28)                 (33)            (35)              (34)             (42)
   Other, net1                                                     –                 5                11                 7                   (4)              5                 1               (2)
      Total Other Income (Expense)                               (21)              (22)              (19)              (21)                 (37)            (30)              (33)             (44)
Income Before Income Taxes                                       263               283              187               405                  274             315               158              180
Provision for Income Taxes                                       104               112                74              160                  105             121                 50              67
Net Income                                                     $ 159            $ 171             $ 113             $ 245                 $ 169          $ 194             $ 108             $ 113
Basic Earnings Per Share                                       $0.53            $0.58             $0.39             $0.86                 $0.59          $0.68             $0.38             $0.38
Weighted Avg. Common Shares                                      298               293              289               286                  285             285               288              297
Diluted Earnings Per Share                                     $0.52            $0.57             $0.39             $0.85                 $0.58          $0.67             $0.37             $0.38

Avg Common and Common Equiv. Shares                              304               298              294               290                  289             290               293              302


SELECTED STATISTICS

Operating Margin                                               6.6%              6.7%              4.6%              8.8%                 6.5%            7.0%             3.9%              4.4%
Pretax Margin                                                  6.1%              6.2%              4.1%              8.4%                 5.7%            6.4%             3.3%              3.5%

FedEx Corp. Average FTEs                                    157,781          162,738           164,902           166,504            168,589           171,924           182,263            185,132




1 - FedEx Express realized a gain on the sale of securities in Q3 FY00, increasing EPS by $0.02, and a $12 million gain in Q4 FY00 from the insurance settlement on an MD11 aircraft
    destroyed in an accident.
2 - The FedEx Freight segment includes the operations of FedEx Freight West from December 1, 2000 and FedEx Freight East from January 1, 2001. Prior to December 1, 2000,
    FedEx Freight West results are included in 'Other & eliminations'.
3 - Q4 FY01 includes a $124 million charge associated with curtailing certain aircraft modification and development programs and reorganizing operations at FedEx Supply Chain       .


    Services. Of the total, $102 million was incurred at FedEx Express and $22 million was incurred at FedEx Supply Chain Services.  .




4 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,       .



    the inception of the FedEx Freight segment.


Unaudited. Differences may result due to rounding.

6 / FedEx Historical Stat Book
                      FedEx Corp. Quarterly Consolidated Statements of Income
                                        FY 2002 – FY 2003
Years ended May 31
In millions, except EPS and FTEs

                                                                   FY 2002                                                             FY 2003
                                                      FIRST   SECOND     THIRD FOURTH                                     FIRST   SECOND     THIRD FOURTH
                                                     QUARTER QUARTER QUARTER QUARTER                                     QUARTER QUARTER QUARTER QUARTER

Revenue:
  FedEx Express segment                                   $3,767           $3,842           $3,800           $4,029             $3,962           $4,128       $4,094     $4,283
  FedEx Ground segment                                       683              728              715              792                869              905          886        921
  FedEx Freight segment                                      588              565              505              595                615              634          568        626
  Other & eliminations                                        (1)               –               (1)               –                 (1)               –           (3)         –
    Total Revenue                                          5,037            5,135            5,019            5,416              5,445            5,667        5,545      5,830
Operating Expenses:
  Salaries and employee benefits                            2,236            2,231            2,246            2,386             2,426            2,403        2,464      2,485
  Purchased transportation                                    445              464              442              474               518              549          535        553
  Rentals and landing fees                                    432              472              444              432               444              465          452        442
  Depreciation and amortization                               336              342              341              345               339              338          334        340
  Fuel1                                                       302              294              255              295               306              348          363        379
  Maintenance and repairs                                     312              292              306              330               371              354          344        329
  Airline stabilization compensation                            –             (116)              (3)               –                 –                –            –          –
  Other1                                                      739              723              751              738               758              783          784        810
     Total Operating Expenses                               4,802            4,702            4,782            5,000             5,162            5,240        5,276      5,338
Operating Income (Loss):
  FedEx Express segment                                       120              306              138              237               128              230         130        295
  FedEx Ground                                                 59               81               69              128               101              135         109        149
  FedEx Freight segment                                        55               55               22               53                54               62          28         49
  Other & eliminations                                          1               (9)               8               (2)                –                –           2         (1)
     Total Operating Income                                   235              433              237              416               283              427         269        492
Other Income (Expense):
   Interest, net                                              (37)             (36)             (36)             (30)               (31)             (28)        (29)       (30)
   Other, net                                                   2               (2)              (7)             (15)                 3               (4)         (3)       (11)
      Total Other Income (Expense)                            (35)             (38)             (43)             (45)               (28)             (32)        (32)       (41)
Income Before Income Taxes                                    200              395              194              371               255              395         237        451
Provision for Income Taxes                                     76              150               74              135                 97             150          90        171
Income Before Accounting Change                               124              245              120              236               158              245         147        280
Cumulative Effect of Change in Accounting                     (15)                –                –                –                 –                –           –          –
Net Income                                                  $ 109            $ 245            $ 120            $ 236             $ 158            $ 245        $ 147      $ 280
Diluted Earnings Per Share:
   Income Before Accounting Change                          $0.41            $0.81            $0.39            $0.78             $0.52            $0.81        $0.49      $0.92
   Cumulative Effect of Accounting Change                   (0.05)               –                –                –                 –                –            –          –
      Diluted Earnings Per Share                            $0.36            $0.81            $0.39            $0.78             $0.52            $0.81        $0.49      $0.92
Avg Common and Common Equiv. Shares                           302              302              304              304               302              303         303        303


SELECTED STATISTICS

Operating Margin                                            4.7%             8.4%             4.7%             7.7%               5.2%             7.5%        4.8%       8.4%
Pretax Margin                                               4.0%             7.7%             3.9%             6.9%               4.7%             7.0%        4.3%       7.7%

FedEx Corp. Average FTEs                                 183,586          185,490          184,338          186,414           190,616          192,445       191,495    189,098

Dividends Paid Per Common Share                                                                                                  $0.05            $0.05        $0.05      $0.05




1 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,
    the inception of the FedEx Freight segment.



Unaudited. Differences may result due to rounding.                                                                                              FedEx Historical Stat Book / 7
                        FedEx Corp. Quarterly Consolidated Statements of Income
                                          FY 2004 – FY 2005
Years ended May 31
In millions, except EPS and FTEs

                                                                       FY 2004                                                                         FY 2005
                                                          FIRST   SECOND     THIRD  FOURTH                                                FIRST   SECOND     THIRD                       FOURTH
                                                        QUARTER1 QUARTER2 QUARTER3 QUARTER5                                              QUARTER QUARTER8 QUARTER                        QUARTER


Revenue:
  FedEx Express segment                                        $4,137             $4,279            $4,374                  $4,707          $4,616           $4,834            $4,915       $5,120
  FedEx Ground segment                                            914                978               960                   1,058           1,073            1,174             1,200        1,233
  FedEx Freight segment                                           637                664               630                     758             807              820               747          843
  FedEx Kinko's segment4                                            –                  –                 –                     521             490              524               499          553
                       6
  Other & eliminations                                             (1)                (1)               98                      (3)            (11)             (18)              (22)         (34)
     Total Revenue                                              5,687              5,920             6,062                   7,041           6,975            7,334             7,339        7,715
Operating Expenses:
  Salaries and employee benefits                                 2,570             2,559              2,649                  2,950           2,920            2,930             3,026        3,087
  Purchased transportation                                         555               598                602                    652             681              747               748          759
                           7
  Rentals and landing fees                                         429               447                474                    568             551              577               585          586
  Depreciation and amortization                                    334               336                340                    365             360              363               368          371
  Fuel7                                                            334               352                402                    443             483              592               570          672
  Maintenance and repairs7                                         364               370                380                    409             428              422               413          432
  Airline stabilization                                              –                 –                  –                      –               –               48                 –            –
  Business realignment costs                                       132               283                 14                      6               –                –                 –            –
  Other7                                                           769               792                829                    963             973            1,055             1,077        1,068
     Total Operating Expenses                                    5,487             5,737              5,690                  6,356           6,396            6,734             6,787        6,975
Operating Income (Loss):
  FedEx Express segment                                             23                (19)              218                       407         310                333             340          431
  FedEx Ground segment                                             116                135               112                       159         147                135             149          173
  FedEx Freight segment                                             61                 66                37                        80         103                102              54           95
  FedEx Kinko's segment4                                             –                  –                 –                        39          19                 29              11           41
  Other & eliminations6                                              –                  1                 5                         –           –                  1              (2)           –
     Total Operating Income                                        200                183               372                       685         579                600             552          740
Other Income (Expense):
   Interest, net                                                     (5)              (35)                 (36)                   (40)         (39)              (38)             (34)         (28)
   Other, net                                                         1                (2)                  (2)                    (2)          (6)               (8)              (4)          (1)
      Total Other Income (Expense)                                   (4)              (37)                 (38)                   (42)         (45)              (46)             (38)         (29)
Income Before Income Taxes                                         196                146               334                       643         534                554             514          711
Provision for Income Taxes                                           68                55               127                       231         204                200             197          263
Net Income                                                       $ 128             $ 91               $ 207                  $ 412           $ 330            $ 354             $ 317        $ 448
Basic Earnings Per Share                                         $0.43             $0.31              $0.69                  $1.38           $1.10            $1.18             $1.05        $1.48
Weighted Avg. Common Shares                                        298                298               299                       299         300                301             302          302
Diluted Earnings Per Share                                       $0.42             $0.30              $0.68                  $1.36           $1.08            $1.15             $1.03        $1.46
Avg Common and Common Equiv. Shares                                303                304               303                       304         305                307             308          308


SELECTED STATISTICS

Operating Margin                                                 3.5%               3.1%               6.1%                      9.7%        8.3%              8.2%             7.5%         9.6%
Pretax Margin                                                    3.4%               2.5%               5.5%                      9.1%        7.7%              7.6%             7.0%         9.2%

FedEx Corp. Average FTEs                                      189,912           191,061            195,692                 207,023         210,692         215,805            218,898      217,214

Dividends Paid Per Common Share                                  $0.05             $0.05              $0.06                  $0.06           $0.07            $0.07             $0.07        $0.07

1 - Q1 FY04 includes $132 million ($82 million, net of tax, or $0.27 per diluted share) of business realignment costs. The quarter also includes a $26 million, net of tax,
    or $0.08 per diluted share benefit related to a favorable ruling on a tax case.
2 - Q2 FY04 includes $283 million ($175 million, net of tax, or $0.57 per diluted share) of business realignment costs.
3 - Q3 FY04 includes $14 million ($9 million, net of tax, or $0.03 per diluted share) of business realignment costs.
4 - The FedEx Kinko's segment was formed in the fourth quarter of 2004.
5 - Q4 FY04 includes $6 million ($4 million , net of tax, or $0.01 per diluted share) of business realignment costs.
6 - The FedEx Kinko's segment was formed in the fourth quarter of fiscal 2004. Results from the February 12, 2004 date of acquisition through February 29, 2004 are
    included in 'Other & eliminations' (approximately $100 million of revenue and $6 million of operating income).           .




7 - Certain prior period amounts have been reclassified to conform to the current period's presentation.     .




8 - Results for Q2 FY05 include an $11 million or $0.04 per diluted share benefit from an income tax adjustment.       .




Unaudited. Differences may result due to rounding.

8 / FedEx Historical Stat Book
                                                 FedEx Corp. Capital Spending
                                                     FY 1998 – FY 2005
Years ended May 31
In millions


                                                                     FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
By Asset Type
Aircraft and Related Equipment                                                     $ 606    $ 469    $ 756    $ 730      $ 762     $ 372     $ 990
Facilities and Sort Equipment                                                        466      437      353      292        254       332       496
Information Technology Investments                                                   366      378      406      288        273       249       331
Vehicles1                                                                              –        –        –        –        116       212       261
Other Equipment1                                                                     332      343      378      305        106       106       158
   Total On-Balance Sheet Capital                                     $1,880      $1,770   $1,627   $1,893   $1,615     $1,511    $1,271    $2,236
Equivalent Capital, Principally
  Aircraft-Related                                                        459       561      365         –        –          –          –            –
    Total On- and Off-Balance Sheet Capital                           $2,339      $2,331   $1,992   $1,893   $1,615     $1,511    $1,271    $2,236




By Segment
FedEx Express segment                                                                                                    $ 917     $ 592    $1,195
FedEx Ground segment                                                                                                       252       314       456
FedEx Freight segment                                                                                                      139       130       217
FedEx Kinko's segment2                                                                                                       –        36       152
Other3                                                                                                                     203       199       216
   Total On-Balance Sheet Capital                                     $1,880      $1,770   $1,627   $1,893   $1,615     $1,511    $1,271    $2,236

Equivalent Capital, Principally
  Aircraft-Related                                                        459       561      365         –        –          –          –            –

    Total On- and Off-Balance Sheet Capital                           $2,339      $2,331   $1,992   $1,893   $1,615     $1,511    $1,271    $2,236




1 - Vehicles were included in the Other Equipment classification prior to FY03.
2 - The FedEx Kinko's segment was formed in Q4 FY04.
3 - Other is principally FedEx Services.

Unaudited. Differences may result due to rounding.


                                                                                                                      FedEx Historical Stat Book /   9
        FedEx Express Segment Annual Consolidated Statements of Income
                             FY 1998 – FY 2005
Years ended May 31
In millions, except FTEs

                                                                      FY 1998         FY 1999         FY 2000        FY 2001         FY 2002         FY 2003        FY 2004        FY 2005
Package Revenue:
    U.S. Overnight Box                                                                  $5,409          $5,684          $5,830         $5,338          $5,432         $5,558        $5,969
    U.S. Overnight Envelope                                                              1,776           1,854           1,871          1,755           1,715          1,700         1,798
       Total U.S. Overnight                                              $6,811          7,185           7,538           7,701          7,093           7,147          7,258         7,767
    U.S. Deferred                                                         2,179          2,271           2,428           2,492          2,383           2,510          2,592         2,799
       Total U.S. Package Revenue                                         8,990          9,456           9,966          10,193          9,476           9,657          9,850        10,566
    International Priority4                                               2,627          2,868           3,302           3,607          3,475           3,941          4,609         5,464
       Total Package Revenue                                             11,617         12,324          13,268          13,800         12,951          13,598         14,459        16,030
Freight Revenue:
    U.S.                                                                    337             440            566             651           1,273          1,564           1,609        1,854
    International Priority4                                                 104             151            250             333             358            426             522          670
    International Airfreight4                                               598             531            492             424             384            400             393          381
       Total Freight Revenue                                              1,039           1,122          1,308           1,408           2,015          2,390           2,524        2,905
Other Revenue                                                               599             533             520            437             471             479               514      550
Total Revenue                                                          $13,255         $13,979        $15,096         $15,645         $15,438        $16,467         $17,497       $19,485

Operating Expenses:
  Salaries and employee benefits                                          5,832          6,225           6,654           6,382          6,565           7,001          7,403         7,704
  Purchased transportation1                                                   –              –               –             584            564             609            694           843
  Rentals and landing fees                                                1,221          1,318           1,431           1,424          1,531           1,557          1,531         1,608
  Depreciation and amortization                                             845            912           1,001             809            819             818            810           798
  Fuel                                                                      709            594             888           1,063          1,009           1,231          1,343         2,012
  Maintenance and repairs                                                   808            888           1,027             971            983           1,087          1,193         1,276
  Airline stabilization                                                       –              –               –               –           (119)              –              –            48
  Business realignment costs                                                  –              –               –               –              –               –            428             –
  Intercompany charges                                                        –              –               –           1,317          1,331           1,328          1,442         1,509
  Other1,2                                                                2,989          3,171           3,196           2,259          1,954           2,053          2,024         2,273
  Merger expenses                                                            14              –               –               –              –               –              –             –
                                                                         12,418         13,108          14,197          14,809         14,637          15,684         16,868        18,071

Operating Income                                                            837             871             899            836             801             783               629     1,414

Other Income (Expense):
   Interest, net                                                           (110)            (86)            (78)            (68)           (60)            (46)
   Other, net                                                                 8             (14)             19              (3)           (53)            (57)
                                                                           (102)           (100)            (59)            (71)          (113)           (103)

Income Before Income Taxes                                                  735             771             840            765             688             680

Provision for Income Taxes                                                  314             312             332            279             254             255

Net Income                                                               $ 421           $ 459           $ 508          $ 486           $ 434           $ 425




SELECTED STATISTICS

Operating Margin                                                           6.3%           6.2%            6.0%            5.3%           5.2%            4.8%            3.6%        7.3%
Pretax Margin                                                              5.5%           5.5%            5.6%            4.9%           4.5%            4.1%

Average FTEs                                                           119,072         123,274        127,592         125,304         122,638        123,506         121,733       123,334


1 - Purchased transportation is included in Other through FY 2000.

2 - FY01 includes a $102 million charge associated with curtailing certain aircraft modification and development programs.
3 - First quarter fiscal 2006 results include a $75 million one-time, non-cash charge to adjust the accounting for certain facility leases, which reduced operating margin
    by 1.4 percentage points.
4 - Amounts reclassified as described in footnote 3 on page 11.

NOTE: FY01 large element expense detail for FedEx Express is not directly comparable to prior periods due to intercompany chargebacks resulting from the creation
      of FedEx Services.

Differences may result due to rounding.


10 / FedEx Historical Stat Book
      FedEx Express Segment Quarterly Consolidated Statements of Income
                             FY 1998 – FY 1999
Years ended May 31
In millions, except FTEs
                                                                          FY 1998                                                                  FY 1999
                                                   FIRST             SECOND     THIRD                   FOURTH              FIRST             SECOND     THIRD                  FOURTH
                                                  QUARTER           QUARTER QUARTER                     QUARTER            QUARTER           QUARTER QUARTER                    QUARTER
Package Revenue:
   U.S. Overnight Box                                                                                                            $1,333            $1,346            $1,320            $1,410
   U.S. Overnight Envelope                                                                                                          445               431               432               468
      Total U.S. Overnight                              $1,702            $1,663            $1,667            $1,779              1,778             1,777             1,752             1,878
   U.S. Deferred                                           560               518               549               552                544               558               584               585
      Total U.S. Packages                                2,262             2,181             2,216             2,331              2,322             2,335             2,336             2,463
   International Priority3                                 634               673               637               684                694               725               692               756
      Total Package Revenue                              2,896             2,854             2,853             3,015              3,016             3,060             3,028             3,219
Freight Revenue:
   U.S.                                                      73                85                86                93                100               108               108             124
   International Priority3                                   21                26                26                30                 32                37                38              45
   International Airfreight3                                151               166               139               142                134               139               129             129
      Total Freight Revenue                                 245               277               251               265                266               284               275             298
Other Revenue                                               156               168               129               146                135               138               128             132

Total Revenue                                             3,297             3,299             3,233             3,426              3,417             3,482            3,431             3,649

Operating Expenses:1
  Salaries and employee benefits                          1,451             1,425             1,448             1,508              1,541             1,542            1,546             1,596
  Rentals and landing fees                                  274               317               321               309                313               328              344               333
  Depreciation and amortization                             202               209               215               219                220               222              233               237
  Fuel                                                      174               182               186               167                147               151              144               152
  Maintenance and repairs                                   198               196               200               214                229               218              219               222
  Other2                                                    734               756               751               748                748               770              850               803
  Merger Expenses                                             –                 –                14                 –                  –                 –                –                 –
                                                          3,033             3,085             3,135             3,165              3,198             3,231            3,336             3,343

Operating Income                                            264               214                98               261                219               251                95             306

Other Income (Expense):
   Interest, net                                             (26)              (29)             (30)              (25)               (22)              (21)              (22)             (21)
   Other, net                                                  9                (1)               1                (1)                (4)               (2)               (8)               –
                                                             (17)              (30)             (29)              (26)               (26)              (23)              (30)             (21)

Income Before Income Taxes                                  247               184                69               235                193               228                65             285

Provision for Income Taxes                                  103                 77               35                99                 80                95                22             115

Net Income                                               $ 144             $ 107              $ 34             $ 136              $ 113             $ 133             $ 43             $ 170




SELECTED STATISTICS

Operating Margin                                           8.0%             6.5%              3.0%              7.6%               6.4%              7.2%              2.8%             8.4%
Pretax Margin                                              7.5%             5.6%              2.1%              6.9%               5.6%              6.5%              1.9%             7.8%

Average FTEs                                           116,039           118,366           120,804           121,114            121,148           122,983          125,315            123,741




1 - FedEx Express incurred approximately $81 million of operating expenses and $10 million of bank fees and negative arbitrage on borrowings in Q3 FY99 as part of the contingency
    plans in connection with the FedEx pilot negotiations.

2 - Includes purchased transportation.
3 - During Q3 FY07, we reclassified certain revenues previously included within International Priority package revenues in the table above that were international priority freight
    shipments to International Priority Freight to more precisely present the nature of the services provided. Our revenue growth associated with these freight service
    offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.

Unaudited. Differences may result due to rounding.


                                                                                                                                                   FedEx Historical Stat Book / 11
      FedEx Express Segment Quarterly Consolidated Statements of Income
                             FY 2000– FY 2001
Years ended May 31
In millions, except FTEs
                                                                          FY 2000                                                                  FY 2001
                                                   FIRST             SECOND     THIRD                   FOURTH              FIRST             SECOND     THIRD                  FOURTH
                                                  QUARTER           QUARTER QUARTER                     QUARTER            QUARTER           QUARTER QUARTER                    QUARTER
Package Revenue:
   U.S. Overnight Box                                   $1,380            $1,393            $1,421            $1,490             $1,479            $1,484            $1,425            $1,442
   U.S. Overnight Envelope                                 453               451               454               496                472               456               451               492
      Total U.S. Overnight                               1,833             1,844             1,875             1,986              1,951             1,940             1,876             1,934
   U.S. Deferred                                           559               588               642               639                618               634               639               601
      Total U.S. Packages                                2,392             2,432             2,517             2,625              2,569             2,574             2,515             2,535
   International Priority4                                 769               815               822               896                905               933               861               909
      Total Package Revenue                              3,161             3,247             3,339             3,521              3,474             3,507             3,376             3,444
Freight Revenue:
   U.S.                                                     130               144               141               151                162               177               157             155
   International Priority4                                   49                66                65                70                 79                90                84              79
   International Airfreight4                                126               127               117               122                115               102               103             104
      Total Freight Revenue                                 305               337               323               343                356               369               344             338
Other Revenue                                               121               152                96               151                114               134                91              98
Total Revenue                                             3,587             3,736             3,758             4,015              3,944             4,010            3,811             3,880

Operating Expenses:
  Salaries and employee benefits                          1,609             1,640             1,686             1,719              1,615             1,604            1,595             1,568
  Purchased transportation                                                                                                           150               147              144               143
  Rentals and landing fees                                  347               365               356               363                345               355              357               367
  Depreciation and amortization                             242               245               256               258                200               204              202               203
  Fuel                                                      181               217               248               242                241               300              276               246
  Maintenance and repairs                                   238               258               253               278                268               239              216               248
  Intercompany charges                                        –                 –                 –                 –                327               346              321               323
  Other1,3                                                  761               799               816               820                541               548              544               626
                                                          3,378             3,524             3,615             3,680              3,687             3,743            3,655             3,724

Operating Income                                            209               212               143               335                257               267               156             156

Other Income (Expense):
   Interest, net                                             (19)              (19)             (22)              (18)               (22)              (21)              (11)             (14)
   Other, net2                                                (1)                4                9                 7                 (2)                1                 –               (2)
                                                             (20)              (15)             (13)              (11)               (24)              (20)              (11)             (16)

Income Before Income Taxes                                  189               196               131               324                233               247               145             140

Provision for Income Taxes                                    75                77               52               128                 90                95                43              51

Net Income                                               $ 114             $ 119              $ 79             $ 196              $ 143             $ 152             $ 102             $ 89




SELECTED STATISTICS

Operating Margin                                           5.8%             5.7%              3.8%              8.3%               6.5%              6.7%              4.1%             4.0%
Pretax Margin                                              5.3%             5.2%              3.5%              8.1%               5.9%              6.2%              3.8%             3.6%

Average FTEs                                           124,625           126,138           129,125           130,483            125,313           125,787          126,694            123,470




1 - Includes purchased transportation for FY 2000.
2 - FedEx Express realized a gain on the sale of securities in Q3 FY00, increasing EPS by $0.02, and a $12 million gain in Q4 FY00 from the insurance settlement on an MD11 aircraft
    destroyed in an accident.
3 - Q4 FY01 includes a $102 million charge associated with curtailing certain aircraft modification and development programs.
4 - During Q3 FY07, we reclassified certain revenues previously included within International Priority package revenues in the table above that were international priority freight
    shipments to International Priority Freight to more precisely present the nature of the services provided. Our revenue growth associated with these freight service
    offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.
NOTE: FY01 and subsequent expense detail for FedEx Express is not directly comparable to prior periods due to intercompany chargebacks resulting from the creation of FedEx Services.

Unaudited. Differences may result due to rounding.


12 / FedEx Historical Stat Book
      FedEx Express Segment Quarterly Consolidated Statements of Income
                             FY 2002 – FY 2003
Years ended May 31
In millions, except FTEs
                                                                           FY 2002                                                         FY 2003
                                                    FIRST             SECOND     THIRD                   FOURTH               FIRST   SECOND     THIRD FOURTH
                                                   QUARTER           QUARTER QUARTER                     QUARTER             QUARTER QUARTER QUARTER QUARTER
Package Revenue:
    U.S. Overnight Box                                    $1,373            $1,299            $1,299            $1,368             $1,335             $1,351            $1,355         $1,391
    U.S. Overnight Envelope                                  465               420               424               447                427                423               418            447
       Total U.S. Overnight                                1,838             1,719             1,723             1,815              1,762              1,774             1,773          1,838
    U.S. Deferred                                            583               573               618               608                591                623               666            630
       Total U.S. Packages                                 2,421             2,292             2,341             2,423              2,353              2,397             2,439          2,468
    International Priority1                                  874               861               816               924                930                987               954          1,069
       Total Package Revenue                               3,295             3,153             3,157             3,347              3,283              3,384             3,393          3,537
Freight Revenue:
    U.S.                                                     173               363                357               381                380               402               394           388
    International Priority1                                   81                92                 83               102                100               113                97           117
    International Airfreight1                                 97                99                 90                97                 92               101               100           107
       Total Freight Revenue                                 351               554                530               580                572               616               591           612
Other Revenue                                                121               135                113               102                107               128               110           134
Total Revenue                                              3,767             3,842             3,800             4,029               3,962             4,128             4,094          4,283

Operating Expenses:
  Salaries and employee benefits                           1,610             1,609             1,633             1,713               1,719             1,716             1,781          1,785
  Purchased transportation                                   143               143               137               141                 144               151               151            163
  Rentals and landing fees                                   370               402               384               375                 382               400               391            384
  Depreciation and amortization                              202               203               207               207                 204               205               203            206
  Fuel                                                       264               258               226               261                 271               307               320            333
  Maintenance and repairs                                    247               231               242               263                 294               277               269            247
  Airline stabilization compensation                           –              (116)               (3)                –                   –                 –                 –              –
  Intercompany charges                                       333               322               334               342                 335               324               328            341
  Other                                                      478               484               502               490                 485               518               521            529
                                                           3,647             3,536             3,662             3,792               3,834             3,898             3,964          3,988

Operating Income                                             120               306                138               237                128               230               130           295

Other Income (Expense):
   Interest, net                                              (12)              (15)              (18)              (15)                (12)              (11)              (12)          (11)
   Other, net                                                  (9)               (9)              (18)              (17)                (10)              (13)              (12)          (22)
                                                              (21)              (24)              (36)              (32)                (22)              (24)              (24)          (33)

Income Before Income Taxes                                     99              282                102               205                106               206               106           262

Provision for Income Taxes                                     37              106                 38                73                  40                77                40           98

Net Income                                                 $ 62             $ 176              $ 64              $ 132               $ 66             $ 129              $ 66          $ 164




SELECTED STATISTICS

Operating Margin                                            3.2%              8.0%              3.6%              5.9%               3.2%               5.6%              3.2%          6.9%
Pretax Margin                                               2.6%              7.3%              2.7%              5.1%               2.7%               5.0%              2.6%          6.1%

Average FTEs                                            122,561           122,162           122,717           123,095             123,730           123,408           124,581         122,325




1 - During Q3 FY07, we reclassified certain revenues previously included within International Priority package revenues in the table above that were international priority freight
    shipments to International Priority Freight to more precisely present the nature of the services provided. Our revenue growth associated with these freight service
    offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.

NOTE: FY01 and subsequent expense detail for FedEx Express is not directly comparable to prior periods due to intercompany chargebacks resulting from the creation of FedEx Services.

Unaudited. Differences may result due to rounding.


                                                                                                                                                    FedEx Historical Stat Book /          13
      FedEx Express Segment Quarterly Consolidated Statements of Income
                             FY 2004 – FY 2005
Years ended May 31
In millions, except FTEs
                                                                 FY 2004                                                                   FY 2005
                                                    FIRST   SECOND     THIRD FOURTH                                           FIRST   SECOND     THIRD FOURTH
                                                   QUARTER QUARTER QUARTER QUARTER                                           QUARTER QUARTER QUARTER QUARTER
Package Revenue:
    U.S. Overnight Box                                    $1,348            $1,347            $1,385            $1,478              $1,449            $1,471            $1,493         $1,556
    U.S. Overnight Envelope                                  432               408               398               461                 439               432               444            483
       Total U.S. Overnight                                1,780             1,755             1,783             1,939               1,888             1,903             1,937          2,039
    U.S. Deferred                                            606               626               686               675                 648               682               759            710
       Total U.S. Packages                                 2,386             2,381             2,469             2,614               2,536             2,585             2,696          2,749
    International Priority1                                1,046             1,129             1,144             1,290               1,289             1,361             1,347          1,467
       Total Package Revenue                               3,432             3,510             3,613             3,904               3,825             3,946             4,043          4,216
Freight Revenue:
    U.S.                                                     365                401               419               424                421                471               474          488
    International Priority1                                  109                129               127               157                151                176               167          177
    International Airfreight1                                105                 98                97                94                 90                 91                94          106
       Total Freight Revenue                                 579                628               643               675                662                738               735          771
Other Revenue                                                126                141               118               128                129                150               137          134
Total Revenue                                              4,137             4,279             4,374              4,707              4,616             4,834             4,915          5,120

Operating Expenses:
  Salaries and employee benefits                           1,834             1,806             1,855              1,908              1,889             1,873             1,961          1,981
  Purchased transportation                                   158               169               177                190                191               206               216            230
  Rentals and landing fees                                   370               384               388                389                383               399               411            415
  Depreciation and amortization                              204               203               203                200                200               199               199            200
  Fuel                                                       293               310               356                384                422               513               498            579
  Maintenance and repairs                                    285               293               300                315                325               322               307            322
  Airline Stabilization Act charge                             –                 –                 –                  –                  –                48                 –              –
  Business realignment costs                                 132               279                12                  5                  –                 –                 –              –
  Intercompany charges                                       342               347               350                403                362               374               382            391
  Other                                                      496               507               515                506                534               567               601            571
                                                           4,114             4,298             4,156              4,300              4,306             4,501             4,575          4,689

Operating Income (Loss)                                        23               (19)              218               407                310                333               340          431




SELECTED STATISTICS

Operating Margin                                            0.6%             (0.4%)             5.0%              8.6%                6.7%              6.9%              6.9%          8.4%

Average FTEs                                            122,897           121,807           122,025            120,227            121,566           122,120           125,865         123,842




1 - During Q3 FY07, we reclassified certain revenues previously included within International Priority package revenues in the table above that were international priority freight
    shipments to International Priority Freight to more precisely present the nature of the services provided. Our revenue growth associated with these freight service
    offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.

Unaudited. Differences may result due to rounding.


14 / FedEx Historical Stat Book
                                         FedEx Express Annual Shipment Statistics
                                                   FY 1998 – FY 2005

                                                                     FY 1998        FY 1999        FY 2000        FY 2001         FY 2002        FY 2003        FY 2004           FY 2005
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
    U.S. Overnight Box (FO, EHB, POB, SOB)                                              1,207          1,249          1,264          1,170           1,176          1,179           1,184
    U.S. Overnight Envelope (EHE, POE, SOE)                                               751            771            757            699             679            667             680
       Total U.S. Overnight (FO, EH, PO, SO)                            1,886           1,958          2,020          2,021          1,869           1,855          1,846           1,864
    U.S. Deferred (E2, ES)                                                872             893            916            899            868             897            925             958
       Total U.S. Packages                                              2,758           2,851          2,936          2,920          2,737           2,752          2,771           2,822
    International Priority (IP,IE) 1                                      257             278            315            343            338             366            393             433
       Total Avg Daily Packages                                         3,015           3,129          3,251          3,263          3,075           3,118          3,164           3,255
Average Daily Freight Pounds (000s):
    U.S. (F1/F2/F3/Domestic ATA)                                        3,356           4,332          4,693          4,337          7,736          8,969          8,519            8,885
    International Priority (IPF,IEF) 1                                    265             388            613            786            901            978          1,148            1,395
    International Airfreight (IXF/ATA) 1                                2,770           2,633          2,420          2,208          2,082          2,174          2,093            1,914
       Total Avg Daily Freight Pounds                                   6,391           7,353          7,726          7,331         10,719         12,121         11,760           12,194


YIELD
Revenue Per Package:
    U.S. Overnight Box (FO, EHB, POB, SOB)                                            $17.51         $17.70          $18.09         $17.90         $18.18         $18.49           $19.77
    U.S. Overnight Envelope (EHE, POE, SOE)                                             9.24           9.36            9.69           9.84           9.95          10.00            10.37
       Total U.S. Overnight (FO, EH, PO, SO)                           $14.22          14.34          14.52           14.95          14.88          15.17          15.42            16.34
    U.S. Deferred (E2, ES)                                               9.84           9.93          10.31           10.87          10.77          11.02          10.99            11.46
       Total U.S. Packages                                              12.83          12.96          13.21           13.69          13.58          13.82          13.94            14.69
    International Priority (IP,IE) 1                                    40.26          40.22          40.83           41.21          40.36          42.38          45.96            49.47
       Total Avg Daily Packages                                        $15.17         $15.37         $15.87          $16.59         $16.52         $17.17         $17.92           $19.31
Revenue Per Freight Pound:
    U.S. (F1/F2/F3/Domestic ATA)                                        $0.40           $0.40          $0.47          $0.59          $0.65           $0.69          $0.74           $0.82
    International Priority (IPF,IEF) 1                                   1.54            1.53           1.59           1.66           1.56            1.72           1.78            1.88
    International Airfreight (IXF/ATA) 1                                 0.85            0.79           0.79           0.75           0.72            0.72           0.74            0.78
       Total Composite Freight Yield                                    $0.64           $0.60          $0.66          $0.75          $0.74           $0.78          $0.84           $0.93


PACKAGE GROWTH RATES
Average Daily Volume Growth:
    U.S. Overnight Box (FO, EHB, POB, SOB)                                                             3.5%            1.2%          (7.4%)          0.5%            0.3%           0.4%
    U.S. Overnight Envelope (EHE, POE, SOE)                                                            2.7%           (1.8%)         (7.7%)         (2.9%)          (1.8%)          1.9%
       Total U.S. Overnight (FO, EH, PO, SO)                                            3.8%           3.2%            0.0%          (7.5%)         (0.7%)          (0.5%)          1.0%
    U.S. Deferred (E2, ES)                                                              2.4%           2.6%           (1.9%)         (3.4%)          3.3%            3.1%           3.6%
       Total U.S. Packages                                                              3.4%           3.0%           (0.5%)         (6.3%)          0.5%            0.7%           1.8%
    International Priority (IPF,IEF) 1                                                  8.2%          13.3%            8.9%          (1.5%)          8.3%            7.4%          10.2%
       Total Package Volume Growth                                                      3.8%           3.9%            0.4%          (5.8%)          1.4%            1.5%           2.9%
Revenue Growth:
    U.S. Overnight Box (FO, EHB, POB, SOB)                                                             5.1%            2.6%          (8.4%)          1.8%           2.3%            7.4%
    U.S. Overnight Envelope (EHE, POE, SOE)                                                            4.4%            0.9%          (6.2%)         (2.3%)         (0.9%)           5.8%
       Total U.S. Overnight (FO, EH, PO, SO)                                            5.5%           4.9%            2.2%          (7.9%)          0.8%           1.6%            7.0%
    U.S. Deferred (E2, ES)                                                              4.2%           6.9%            2.6%          (4.4%)          5.3%           3.3%            8.0%
       Total U.S. Packages                                                              5.2%           5.4%            2.3%          (7.0%)          1.9%           2.0%            7.3%
    International Priority (IPF,IEF) 1                                                  9.2%          15.1%            9.2%          (3.7%)         13.4%          17.0%           18.6%
       Total Package Revenue Growth                                                     6.1%           7.7%            4.0%          (6.2%)          5.0%           6.3%           10.9%
AVG POUNDS PER PACKAGE                                                      7.4            7.4            7.5            7.3             6.8            6.8            7.1            7.1
AVG REVENUE PER PACKAGE LB.                                             $2.06           $2.07          $2.11          $2.28          $2.42           $2.53          $2.52           $2.71
OPERATING WEEKDAYS                                                         254            256            257             255            255            254            255            255



1 - During Q3 FY07, we reclassified certain statistics previously included within International Priority package statistics in the table above that were international priority
    freight shipments to International Priority Freight statistics to more precisely present the nature of the services provided. Our revenue growth associated with these
    freight service offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.


Unaudited. Differences may result due to rounding.


                                                                                                                                               FedEx Historical Stat Book /           15
                                    FedEx Express Quarterly Shipment Statistics
                                               FY 1998 – FY 1999
                                                                FY 1998                                                             FY 1999
                                                    FIRST   SECOND   THIRD FOURTH                                       FIRST   SECOND   THIRD FOURTH
                                                   QUARTER QUARTER QUARTER QUARTER                                     QUARTER QUARTER QUARTER QUARTER
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
    U.S. Overnight Box (FO, POB, SOB)                                                                                         1,150            1,211           1,236              1,232
    U.S. Overnight Envelope (POE, SOE)                                                                                          730              743             759                771
       Total U.S. Overnight                               1,858            1,868           1,877           1,941              1,880            1,954           1,995              2,003
    U.S. Deferred (E2, ES)                                  826              854             933             873                835              895             966                884
       Total U.S. Packages                                2,684            2,722           2,810           2,814              2,715            2,849           2,961              2,887
    International Priority (IP,IE) 1                        244              262             253             269                262              282             276                294
       Total Avg Daily Packages                           2,928            2,984           3,063           3,083              2,977            3,131           3,237              3,181
Average Daily Freight Pounds (000s):
    U.S. (F1/F2/F3/Domestic ATA)                          2,705            3,410           3,495           3,815              3,930            4,480           4,391              4,541
    International Priority (IPF,IEF) 1                      199              285             272             303                317              388             416                432
    International Airfreight (IXF/ATA) 1                  2,652            2,984           2,690           2,756              2,621            2,719           2,645              2,551
       Total Avg Daily Freight Pounds                     5,556            6,679           6,458           6,874              6,867            7,588           7,452              7,524


YIELD
Revenue Per Package:
    U.S. Overnight Box (FO, POB, SOB)                                                                                        $17.56          $17.64           $17.23          $17.60
    U.S. Overnight Envelope (POE, SOE)                                                                                         9.25            9.22             9.17            9.33
       Total U.S. Overnight                              $14.31          $14.13          $14.10           $14.32              14.33           14.44            14.16           14.42
    U.S. Deferred (E2, ES)                                10.59            9.63            9.33             9.89               9.88            9.89             9.76           10.19
       Total U.S. Packages                                13.16           12.72           12.51            12.95              12.96           13.01            12.73           13.12
    International Priority (IP,IE) 1                      40.55           40.76           40.01            39.73              40.08           40.84            40.46           39.56
       Total Avg Daily Packages                          $15.44          $15.17          $14.78           $15.28             $15.34          $15.51           $15.08          $15.56
Revenue Per Freight Pound:
    U.S. (F1/F2/F3/Domestic ATA)                          $0.42            $0.40           $0.39           $0.38              $0.39            $0.38           $0.40              $0.42
    International Priority (IPF,IEF) 1                     1.66             1.47            1.52            1.55               1.52             1.51            1.46               1.60
    International Airfreight (IXF/ATA) 1                   0.89             0.88            0.82            0.80               0.77             0.81            0.79               0.78
       Total Composite Freight Yield                      $0.69            $0.66           $0.62           $0.60              $0.59            $0.59           $0.59              $0.61


PACKAGE GROWTH RATES
Average Daily Volume Growth:
    U.S. Overnight Box (FO, POB, SOB)
    U.S. Overnight Envelope (POE, SOE)
       Total U.S. Overnight                                                                                                    1.2%            4.6%             6.3%              3.2%
    U.S. Deferred (E2, ES)                                                                                                     1.0%            4.7%             3.5%              1.2%
       Total U.S. Packages                                                                                                     1.2%            4.6%             5.4%              2.6%
    International Priority (IP,IE) 1                                                                                           7.4%            7.6%             9.1%              9.3%
       Total Package Volume Growth                                                                                             1.7%            4.9%             5.7%              3.2%
Revenue Growth:
    U.S. Overnight Box (FO, POB, SOB)
    U.S. Overnight Envelope (POE, SOE)
       Total U.S. Overnight                                                                                                    4.5%            6.9%             5.1%               5.6%
    U.S. Deferred (E2, ES)                                                                                                    (2.8%)           7.6%             6.5%               5.9%
       Total U.S. Packages                                                                                                     2.7%            7.0%             5.5%               5.6%
    International Priority (IP,IE) 1                                                                                           9.5%            7.7%             8.6%              10.5%
       Total Package Revenue Growth                                                                                            4.1%            7.2%             6.1%               6.8%
AVG POUNDS PER PACKAGE                                       7.3              7.5             7.3             7.3                7.4              7.6             7.3               7.4
AVG REVENUE PER PACKAGE LB.                               $2.12            $2.02           $2.02           $2.10              $2.06            $2.03           $2.06              $2.11
OPERATING WEEKDAYS                                            64              63               63              64                 66               63              62                65


1 - During Q3 FY07, we reclassified certain statistics previously included within International Priority package statistics in the table above that were international priority
    freight shipments to International Priority Freight statistics to more precisely present the nature of the services provided. Our revenue growth associated with these
    freight service offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.

Unaudited. Differences may result due to rounding.

16 / FedEx Historical Stat Book
                                    FedEx Express Quarterly Shipment Statistics
                                               FY 2000 – FY 2001
                                                                FY 2000                                                             FY 2001
                                                    FIRST   SECOND   THIRD FOURTH                                       FIRST   SECOND   THIRD FOURTH
                                                   QUARTER QUARTER QUARTER QUARTER                                     QUARTER QUARTER QUARTER QUARTER
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
    U.S. Overnight Box (FO, POB, SOB)                     1,205            1,241           1,277           1,275              1,254            1,292           1,288              1,222
    U.S. Overnight Envelope (POE, SOE)                      748              770             765             800                758              757             749                764
       Total U.S. Overnight                               1,953            2,011           2,042           2,075              2,012            2,049           2,037              1,986
    U.S. Deferred (E2, ES)                                  839              913             991             921                876              925             962                837
       Total U.S. Packages                                2,792            2,924           3,033           2,996              2,888            2,974           2,999              2,823
    International Priority (IP,IE) 1                        294              319             314             333                335              356             337                344
       Total Avg Daily Packages          .                3,086            3,243           3,347           3,329              3,223            3,330           3,336              3,167
Average Daily Freight Pounds (000s):
    U.S. (F1/F2/F3/Domestic ATA)                          4,555            5,072           4,607           4,547              4,369            4,749           4,204              4,032
    International Priority (IPF,IEF) 1                      462              634             650             708                721              876             809                741
    International Airfreight (IXF/ATA) 1                  2,505            2,574           2,266           2,337              2,312            2,233           2,164              2,121
       Total Avg Daily Freight Pounds                     7,522            8,280           7,523           7,592              7,402            7,858           7,177              6,894


YIELD
Revenue Per Package:
    U.S. Overnight Box (FO, POB, SOB)                    $17.62          $17.82          $17.38           $17.98             $18.15          $18.23           $17.84          $18.15
    U.S. Overnight Envelope (POE, SOE)                     9.31            9.29            9.29             9.54               9.59            9.56             9.70            9.91
       Total U.S. Overnight                               14.44           14.56           14.35            14.73              14.93           15.03            14.85           14.98
    U.S. Deferred (E2, ES)                                10.25           10.22           10.12            10.67              10.85           10.88            10.71           11.06
       Total U.S. Packages                                13.18           13.20           12.97            13.48              13.69           13.74            13.52           13.82
    International Priority (IP,IE) 1                      40.33           40.58           40.98            41.37              41.47           41.60            41.17           40.61
       Total Avg Daily Packages                          $15.75          $15.88          $15.58           $16.26             $16.58          $16.72           $16.32          $16.73
Revenue Per Freight Pound:
    U.S. (F1/F2/F3/Domestic ATA)                          $0.44            $0.45           $0.48           $0.51              $0.57            $0.59           $0.60              $0.59
    International Priority (IPF,IEF) 1                     1.62             1.66            1.56            1.53               1.69             1.63            1.68               1.65
    International Airfreight (IXF/ATA) 1                   0.78             0.78            0.81            0.80               0.76             0.73            0.77               0.75
       Total Composite Freight Yield                      $0.62            $0.65           $0.67           $0.70              $0.74            $0.75           $0.78              $0.75


PACKAGE GROWTH RATES
Average Daily Volume Growth:
    U.S. Overnight Box (FO, POB, SOB)                     4.7%             2.5%            3.3%            3.5%               4.1%             4.1%             0.9%              (4.1%)
    U.S. Overnight Envelope (POE, SOE)                    2.5%             3.6%            0.7%            3.7%               1.3%            (1.7%)           (2.0%)             (4.5%)
       Total U.S. Overnight                               3.9%             2.9%            2.4%            3.6%               3.0%             1.9%            (0.2%)             (4.3%)
    U.S. Deferred (E2, ES)                                0.5%             2.0%            2.7%            4.3%               4.4%             1.3%            (3.0%)             (9.1%)
       Total U.S. Packages                                2.8%             2.6%            2.4%            3.8%               3.4%             1.7%            (1.1%)             (5.8%)
    International Priority (IP,IE) 1                     12.2%            13.1%           13.8%           13.3%              13.9%            11.6%             7.3%               3.3%
       Total Package Volume Growth                        3.7%             3.6%            3.4%            4.7%               4.4%             2.7%            (0.3%)             (4.9%)
Revenue Growth:
    U.S. Overnight Box (FO, POB, SOB)                     3.5%             3.5%            7.6%            5.7%               7.2%             6.5%             0.3%              (3.2%)
    U.S. Overnight Envelope (POE, SOE)                    1.6%             4.4%            5.4%            6.1%               4.3%             1.2%            (0.9%)             (0.9%)
       Total U.S. Overnight                               3.1%             3.8%            7.0%            5.8%               6.4%             5.2%             0.1%              (2.6%)
    U.S. Deferred (E2, ES)                                2.7%             5.4%            9.9%            9.2%              10.6%             7.8%            (0.6%)             (5.8%)
       Total U.S. Packages                                3.0%             4.2%            7.7%            6.6%               7.4%             5.8%            (0.1%)             (3.4%)
    International Priority (IP,IE) 1                     10.8%            12.4%           18.8%           18.5%              17.7%            14.5%             4.7%               1.5%
       Total Package Revenue Growth                       4.8%             6.1%           10.3%            9.4%               9.9%             8.0%             1.1%              (2.2%)
AVG POUNDS PER PACKAGE                                       7.5              7.7             7.4             7.4                7.5              7.6             7.1                     6.9
AVG REVENUE PER PACKAGE LB.                               $2.10            $2.06           $2.10           $2.19              $2.20            $2.21           $2.29              $2.43
OPERATING WEEKDAYS                                            65              63               64              65                 65               63              62                     65



1 - During Q3 FY07, we reclassified certain statistics previously included within International Priority package statistics in the table above that were international priority       .




    freight shipments to International Priority Freight statistics to more precisely present the nature of the services provided. Our revenue growth associated with these    .




    freight service offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.        .




Unaudited. Differences may result due to rounding.

                                                                                                                                            FedEx Historical Stat Book / 17
                                    FedEx Express Quarterly Shipment Statistics
                                               FY 2002 – FY 2003
                                                                FY 2002                                                             FY 2003
                                                    FIRST   SECOND    THIRD FOURTH                                      FIRST   SECOND   THIRD FOURTH
                                                   QUARTER QUARTER QUARTER QUARTER                                     QUARTER QUARTER QUARTER QUARTER
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
    U.S. Overnight Box (FO, POB, SOB)                     1,165            1,141           1,193           1,179              1,153           1,183            1,189              1,180
    U.S. Overnight Envelope (POE, SOE)                      721              676             698             702                680             685              662                687
       Total U.S. Overnight                               1,886            1,817           1,891           1,881              1,833           1,868            1,851              1,867
    U.S. Deferred (E2, ES)                                  814              845             958             859                846             903              978                863
       Total U.S. Packages                                2,700            2,662           2,849           2,740              2,679           2,771            2,829              2,730
    International Priority (IP,IE) 1                        333              335             329             354                355             377              355                377
       Total Avg Daily Packages                           3,033            2,997           3,178           3,094              3,034           3,148            3,184              3,107
Average Daily Freight Pounds (000s):
    U.S. (F1/F2/F3/Domestic ATA)                          4,352           8,547           8,985            9,145              8,965           9,469           9,131            8,324
    International Priority (IPF,IEF) 1                      760             935             877            1,030                951           1,052             881            1,027
    International Airfreight (IXF/ATA) 1                  2,107           2,089           1,989            2,138              2,019           2,271           2,183            2,224
       Total Avg Daily Freight Pounds                     7,219          11,571          11,851           12,313             11,935          12,792          12,195           11,575


YIELD
Revenue Per Package:
    U.S. Overnight Box (FO, POB, SOB)                    $18.12          $18.06          $17.56           $17.86             $18.08          $18.12          $18.09           $18.43
    U.S. Overnight Envelope (POE, SOE)                     9.93            9.87            9.78             9.78               9.81            9.79           10.03            10.16
       Total U.S. Overnight                               14.99           15.02           14.69            14.84              15.01           15.07           15.21            15.39
    U.S. Deferred (E2, ES)                                11.03           10.77           10.41            10.89              10.93           10.95           10.82            11.40
       Total U.S. Packages                                13.80           13.67           13.25            13.60              13.72           13.73           13.69            14.13
    International Priority (IP,IE) 1                      40.47           40.76           40.01            40.20              40.96           41.51           42.70            44.29
       Total Avg Daily Packages                          $16.72          $16.70          $16.02           $16.64             $16.91          $17.06          $16.92           $17.79
Revenue Per Freight Pound:
    U.S. (F1/F2/F3/Domestic ATA)                          $0.61            $0.67           $0.64           $0.64              $0.66           $0.67            $0.69              $0.73
    International Priority (IPF,IEF) 1                     1.63             1.57            1.53            1.52               1.64            1.70             1.74               1.78
    International Airfreight (IXF/ATA) 1                   0.71             0.75            0.73            0.70               0.71            0.71             0.73               0.75
       Total Composite Freight Yield                      $0.75            $0.76           $0.72           $0.72              $0.75           $0.76            $0.77              $0.83


PACKAGE GROWTH RATES
Average Daily Volume Growth:
    U.S. Overnight Box (FO, POB, SOB)                     (7.1%)        (11.7%)           (7.4%)           (3.6%)             (1.0%)          3.7%            (0.4%)               0.1%
    U.S. Overnight Envelope (POE, SOE)                    (4.9%)        (10.7%)           (6.8%)           (8.0%)             (5.6%)          1.3%            (5.1%)              (2.2%)
       Total U.S. Overnight                               (6.3%)        (11.3%)           (7.2%)           (5.3%)             (2.8%)          2.8%            (2.1%)              (0.7%)
    U.S. Deferred (E2, ES)                                (7.1%)         (8.6%)           (0.4%)            2.6%               3.9%           6.9%             2.0%                0.5%
       Total U.S. Packages                                (6.5%)        (10.5%)           (5.0%)           (3.0%)             (0.8%)          4.1%            (0.7%)              (0.4%)
    International Priority (IP,IE) 1                      (0.6%)         (5.9%)           (2.4%)            2.9%               6.6%          12.5%             7.9%                6.5%
       Total Package Volume Growth                        (5.9%)        (10.0%)           (4.7%)           (2.3%)              0.0%           5.0%             0.2%                0.4%
Revenue Growth:
    U.S. Overnight Box (FO, POB, SOB)                     (7.2%)        (12.5%)           (8.8%)           (5.1%)             (2.8%)          4.0%             4.3%            1.7%
    U.S. Overnight Envelope (POE, SOE)                    (1.5%)         (7.8%)           (6.1%)           (9.2%)             (8.2%)          0.7%            (1.4%)              –
       Total U.S. Overnight                               (5.8%)        (11.4%)           (8.2%)           (6.2%)             (4.1%)          3.2%             2.9%            1.3%
    U.S. Deferred (E2, ES)                                (5.6%)         (9.5%)           (3.2%)            1.0%               1.4%           8.8%             7.8%            3.6%
       Total U.S. Packages                                (5.8%)        (10.9%)           (6.9%)           (4.5%)             (2.8%)          4.6%             4.2%            1.9%
    International Priority (IP,IE) 1                      (3.4%)         (7.7%)           (5.2%)            1.7%               6.4%          14.6%            16.9%           15.7%
       Total Package Revenue Growth                       (5.2%)        (10.1%)           (6.5%)           (2.8%)             (0.4%)          7.3%             7.5%            5.7%
AVG POUNDS PER PACKAGE                                       6.9              7.0             6.7             6.7                6.8              7.0             6.8               6.8
AVG REVENUE PER PACKAGE LB.                               $2.42            $2.40           $2.40           $2.48              $2.49           $2.45            $2.50              $2.62
OPERATING WEEKDAYS                                            65              63               62              65                 64              63               63                64




1 - During Q3 FY07, we reclassified certain statistics previously included within International Priority package statistics in the table above that were international priority
    freight shipments to International Priority Freight statistics to more precisely present the nature of the services provided. Our revenue growth associated with these
    freight service offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.

Unaudited. Differences may result due to rounding.

18 / FedEx Historical Stat Book
                                    FedEx Express Quarterly Shipment Statistics
                                               FY 2004 – FY 2005
                                                                        FY 2004                                                     FY 2005
                                                            FIRST   SECOND    THIRD FOURTH                              FIRST   SECOND   THIRD FOURTH
                                                           QUARTER QUARTER QUARTER QUARTER                             QUARTER QUARTER QUARTER QUARTER
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
    U.S. Overnight Box (FO, POB, SOB)                         1,169        1,169           1,197           1,182              1,150           1,179            1,217              1,192
    U.S. Overnight Envelope (POE, SOE)                          682          655             628             700                662             663              681                712
       Total U.S. Overnight                                   1,851        1,824           1,825           1,882              1,812           1,842            1,898              1,904
    U.S. Deferred (E2, ES)                                      871          924           1,003             902                862             941            1,086                947
       Total U.S. Packages                                    2,722        2,748           2,828           2,784              2,674           2,783            2,984              2,851
    International Priority (IP,IE) 1                            367          394             389             422                415             439              432                448
       Total Avg Daily Packages                               3,089        3,142           3,217           3,206              3,089           3,222            3,416              3,299
Average Daily Freight Pounds (000s):
    U.S. (F1/F2/F3/Domestic ATA)                              7,898       8,649           9,082            8,459              8,213           9,008           9,331            9,012
    International Priority (IPF,IEF) 1                          976       1,193           1,110            1,311              1,294           1,505           1,385            1,399
    International Airfreight (IXF/ATA) 1                      2,276       2,092           2,060            1,944              1,861           1,874           1,868            2,051
       Total Avg Daily Freight Pounds                        11,150      11,934          12,252           11,714             11,368          12,387          12,584           12,462


YIELD
Revenue Per Package:
    U.S. Overnight Box (FO, POB, SOB)                        $18.02      $18.29          $18.37           $19.24             $19.37          $19.81          $19.79           $20.08
    U.S. Overnight Envelope (POE, SOE)                         9.90        9.90           10.06            10.14              10.21           10.33           10.51            10.44
       Total U.S. Overnight                                   15.03       15.27           15.51            15.86              16.02           16.40           16.46            16.48
    U.S. Deferred (E2, ES)                                    10.87       10.74           10.85            11.52              11.57           11.51           11.26            11.54
       Total U.S. Packages                                    13.70       13.75           13.86            14.45              14.59           14.74           14.57            14.84
    International Priority (IP,IE) 1                          44.54       45.50           46.65            46.98              47.80           49.24           50.38            50.41
       Total Avg Daily Packages                              $17.36      $17.73          $17.83           $18.74             $19.05          $19.44          $19.09           $19.66
Revenue Per Freight Pound:
    U.S. (F1/F2/F3/Domestic ATA)                              $0.72        $0.74           $0.73           $0.77              $0.79           $0.83            $0.82              $0.83
    International Priority (IPF,IEF) 1                         1.75         1.72            1.81            1.84               1.79            1.86             1.94               1.94
    International Airfreight (IXF/ATA) 1                       0.72         0.74            0.75            0.74               0.74            0.77             0.81               0.80
       Total Composite Freight Yield           .              $0.81        $0.84           $0.83           $0.88              $0.90           $0.94            $0.94              $0.95


PACKAGE GROWTH RATES
Average Daily Volume Growth:
    U.S. Overnight Box (FO, POB, SOB)                         1.4%        (1.2%)           0.7%            0.2%              (1.6%)           0.9%             1.7%                   0.8%
    U.S. Overnight Envelope (POE, SOE)                        0.2%        (4.4%)          (5.1%)           1.9%              (2.9%)           1.2%             8.4%                   1.7%
       Total U.S. Overnight                                   1.0%        (2.4%)          (1.4%)           0.8%              (2.1%)           1.0%             4.0%                   1.2%
    U.S. Deferred (E2, ES)                                    3.0%         2.3%            2.6%            4.5%              (1.0%)           1.8%             8.3%                   5.0%
       Total U.S. Packages                                    1.6%        (0.9%)          (0.0%)           2.0%              (1.8%)           1.3%             5.5%                   2.4%
    International Priority (IP,IE) 1                          3.4%         4.5%            9.6%           11.9%              13.1%           11.4%            11.1%                   6.2%
       Total Package Volume Growth                 .          1.8%        (0.2%)           1.0%            3.2%                  –            2.5%             6.2%                   2.9%
Revenue Growth:
    U.S. Overnight Box (FO, POB, SOB)                         1.0%        (0.3%)           2.2%            6.3%               7.5%            9.2%             7.8%                5.3%
    U.S. Overnight Envelope (POE, SOE)                        1.2%        (3.5%)          (4.8%)           3.1%               1.6%            5.9%            11.6%                4.8%
       Total U.S. Overnight                                   1.0%        (1.1%)           0.6%            5.5%               6.1%            8.4%             8.6%                5.2%
    U.S. Deferred (E2, ES)                                    2.5%         0.4%            3.0%            7.1%               6.9%            8.9%            10.6%                5.2%
       Total U.S. Packages                                    1.4%        (0.7%)           1.2%            5.9%               6.3%            8.6%             9.2%                5.2%
    International Priority (IP,IE) 1                         12.5%        14.4%           19.9%           20.7%              23.2%           20.5%            17.7%               13.7%
       Total Package Revenue Growth                    .      4.5%         3.7%            6.5%           10.4%              11.5%           12.4%            11.9%                8.0%
AVG POUNDS PER PACKAGE                                          7.0           7.3             7.1             7.1                7.2              7.3             7.0                     7.0
AVG REVENUE PER PACKAGE LB.                                   $2.48        $2.43           $2.52           $2.65              $2.66           $2.65            $2.73              $2.82
OPERATING WEEKDAYS                                              64            63               63              65                 65              63               62                     65



1 - During Q3 FY07, we reclassified certain statistics previously included within International Priority package statistics in the table above that were international priority       .




    freight shipments to International Priority Freight statistics to more precisely present the nature of the services provided. Our revenue growth associated with these    .




    freight service offerings has been significant, and accordingly, we have reclassified the amounts for 1998-2007 to include these revenues within our Freight revenues.        .




Unaudited. Differences may result due to rounding.

                                                                                                                                           FedEx Historical Stat Book / 19
                     FedEx Express Aircraft and Vehicle Fleet Statistics
                                      FY 1998-2005


                                       Max. Operational
                                       Revenue Payload                                              May 31
                                                       1
Aircraft Type                           (Lbs/Aircraft)              1998      1999      2000       2001 2002 2003               2004     2005

Boeing 727-100                                 31,100                 68        68        66         52        42        28        19      18

Boeing 727-200                                 43,100                 95        95        95         95        95        94        94      94

Boeing DC10-10                               117,800                  47        58        69         48        48        48        39      30

Boeing DC10-30                               128,900                  22        22        22         22        19        17        17      17

Boeing MD10-10                               117,800                    –         –         –         3        11        19        27      36

Boeing MD10-30                               128,900                    –         –         –         2         5         5          5      5

Boeing MD11                                  155,800                  25        28        30         34        39        42        42      57

Airbus A300-600                                91,000                 24        31        36         37        37        43        44      47

Airbus A310-200/300                            69,800                 39        39        41         46        50        51        51      62

Cessna 208A                                     3,000                 10        10        10         10        10        10        10      10

Cessna 208B                                     3,400               251        251       251       248       248       247        246     246

Fokker F-27                                    13,500                 32        32        32         32        32        30        27      17

ATR 72                                         17,700                   –         –         –         –         –          –         2      2

ATR 42                                         12,300                   –         –         –         –         –         8        22      29

Shorts SD3-60                                   8,300                   –         –       11         11        11         1          –      –

Aircraft Fleet Total                                                613        634       663       640       647       643        645     670


Vehicle Fleet (000s)

Long-Haul Tractors                                                   1.9       2.2       2.7       2.7       2.9        2.8       2.8     2.7
All Other Motorized Vehicles                                        39.0      40.3      41.9      42.1      41.8       39.9      38.9    37.4
Vehicle Fleet Total                                                 40.9      42.5      44.6      44.8      44.7       42.7      41.7    40.1




1 - Maximum Operational Revenue Payload (MORP) is the lesser of the net volume-limited payload and the net maximum structural payload.


20 / FedEx Historical Stat Book
                                             FedEx Express Jet Fuel Statistics
                                                   FY 1998 – FY 2005

                                                          FY 1998                                           FY 1999
                                              FIRST   SECOND   THIRD FOURTH                     FIRST   SECOND   THIRD FOURTH
                                             QUARTER QUARTER QUARTER QUARTER                   QUARTER QUARTER QUARTER QUARTER

Jet Fuel Gallons (000s)                         195,304        212,020    207,603    212,030     213,962    216,362    223,327    221,524
Price Per Gallon                                     $0.711     $0.710     $0.710     $0.633      $0.541     $0.555     $0.501     $0.541
Jet Fuel Expense ($000s)                       $138,826       $150,604   $147,318   $134,213    $115,820   $120,064   $111,853   $119,861




                                                          FY 2000                                           FY 2001
                                              FIRST   SECOND   THIRD FOURTH                     FIRST   SECOND   THIRD FOURTH
                                             QUARTER QUARTER QUARTER QUARTER                   QUARTER QUARTER QUARTER QUARTER

Jet Fuel Gallons (000s)                         224,825        233,838    227,069    232,209     233,321    244,978    233,734    233,251
Price Per Gallon                                     $0.648     $0.766     $0.897     $0.841      $0.833     $1.038     $0.968     $0.846
Jet Fuel Expense ($000s)                       $145,626       $179,011   $203,569   $195,379    $194,329   $254,303   $226,194   $197,361




                                                          FY 2002                                           FY 2003
                                              FIRST   SECOND   THIRD FOURTH                     FIRST   SECOND   THIRD FOURTH
                                             QUARTER QUARTER QUARTER QUARTER                   QUARTER QUARTER QUARTER QUARTER

Jet Fuel Gallons (000s)                         234,860        269,365    268,660    278,320     280,355    286,423    277,402    280,582
Price Per Gallon                                     $0.932     $0.825     $0.707     $0.794      $0.831     $0.925     $0.992     $1.015
Jet Fuel Expense ($000s)                       $218,868       $222,241   $189,892   $221,087    $233,022   $264,942   $275,253   $284,799




                                                          FY 2004                                           FY 2005
                                              FIRST   SECOND   THIRD FOURTH                     FIRST   SECOND   THIRD FOURTH
                                             QUARTER QUARTER QUARTER QUARTER                   QUARTER QUARTER QUARTER QUARTER

Jet Fuel Gallons (000s)                         277,029        281,115    283,460    284,014     284,564    294,796    294,325    299,168
Price Per Gallon                                     $0.907     $0.949     $1.093     $1.170      $1.300     $1.553     $1.488     $1.717
Jet Fuel Expense ($000s)                       $251,379       $266,842   $309,748   $332,296    $370,074   $457,720   $438,031   $513,753




Unaudited. Differences may result due to rounding.


                                                                                                           FedEx Historical Stat Book / 21
     FedEx Ground Segment Annual Consolidated Statements of Income
                         FY 2001 – FY 2005
Years ended May 31
In millions


                                                     FY 2001   FY 2002   FY 2003   FY 2004   FY 2005
FINANCIAL RESULTS

Revenues                                              $2,565    $2,918    $3,581    $3,910    $4,680

Operating Expenses:
  Salaries and employee benefits                         593       623       709       740       845
  Purchased transportation                               921     1,067     1,327     1,465     1,791
  Rentals                                                 94        85        88        98       122
  Depreciation and amortization                          118       136       155       154       176
  Fuel                                                     9         5        11        16        48
  Maintenance and repairs                                 69        76        89        95       110
  Business realignment costs                               –         –         –         1         –
  Intercompany charges                                   244       256       346       432       482
  Other                                                  404       333       362       387       502
                                                       2,452     2,581     3,087     3,388     4,076

Operating Income                                       $ 113     $ 337     $ 494     $ 522      $604




SELECTED STATISTICS

Operating Margin                                        4.4%     11.5%     13.8%     13.4%     12.9%




Unaudited. Differences may result due to rounding.


22 / FedEx Historical Stat Book
      FedEx Ground Segment Quarterly Consolidated Statements of Income
                            FY 2001 – FY 2002
Years ended May 31
In millions
                                                                  FY 2001                                      FY 2002
                                                FIRST        SECOND     THIRD      FOURTH      FIRST      SECOND     THIRD      FOURTH
                                               QUARTER      QUARTER QUARTER        QUARTER    QUARTER    QUARTER QUARTER        QUARTER
FINANCIAL RESULTS

Revenues                                             $623       $670     $613          $659       $683       $728        $715         $792

Operating Expenses:
  Salaries and employee benefits                      141        153         148        151        150        156         156          161
  Purchased transportation                            228        237         222        234        249        269         266          283
  Rentals                                              21         24          24         25         21         24          21           19
  Depreciation and amortization                        26         29          31         32         32         33          35           36
  Fuel                                                  1          2           3          3          2          1           1            1
  Maintenance and repairs                              18         16          18         17         19         19          19           19
  Intercompany charges                                 60         62          59         63         66         61          63           66
  Other                                                94         99         100        111         85         84          85           79
                                                      589        622         605        636        624        647         646          664

Operating Income                                     $ 34       $ 48     $     8       $ 23       $ 59       $ 81        $ 69         $128




SELECTED STATISTICS

Operating Margin                                     5.5%       7.2%     1.3%         3.5%       8.6%       11.1%        9.7%       16.2%




Unaudited. Differences may result due to rounding.


                                                                                                            FedEx Historical Stat Book / 23
      FedEx Ground Segment Quarterly Consolidated Statements of Income
                            FY 2003 – FY 2004
Years ended May 31
In millions
                                                                   FY 2003                                    FY 2004
                                                FIRST         SECOND     THIRD    FOURTH      FIRST      SECOND     THIRD    FOURTH
                                               QUARTER       QUARTER QUARTER      QUARTER    QUARTER    QUARTER QUARTER      QUARTER
FINANCIAL RESULTS

Revenues                                             $ 869       $ 905    $ 886      $ 921      $ 914       $ 978    $ 960     $1,058

Operating Expenses:
  Salaries and employee benefits                       176        179      176         178        177        187      183         193
  Purchased transportation                             318        337      335         337        342        367      367         389
  Rentals                                               23         23       23          19         20         26       26          26
  Depreciation and amortization                         37         40       38          40         37         39       38          40
  Fuel                                                   1          3        3           4          2          3        4           7
  Maintenance and repairs                               22         22       22          23         23         24       22          26
  Business realignment costs                             –          –        –           –          –          –        1           –
  Intercompany charges                                  94         81       90          81        102        103      107         120
  Other                                                 97         85       90          90         95         94      100          98
                                                       768        770      777         772        798        843      848         899

Operating Income                                     $ 101       $ 135    $ 109      $ 149      $ 116       $ 135    $ 112      $ 159




SELECTED STATISTICS

Operating Margin                                     11.6%      14.9%    12.3%       16.2%      12.7%      13.8%    11.6%       15.0%




Unaudited. Differences may result due to rounding.


24 / FedEx Historical Stat Book
      FedEx Ground Segment Quarterly Consolidated Statements of Income
                                FY 2005
Years ended May 31
In millions
                                                                    FY 2005
                                                FIRST          SECOND     THIRD    FOURTH
                                               QUARTER        QUARTER QUARTER      QUARTER
FINANCIAL RESULTS

Revenues                                             $1,073      $1,174   $1,200     $1,233

Operating Expenses:
  Salaries and employee benefits                       197          213      214        221
  Purchased transportation                             410          456      464        461
  Rentals                                               26           32       31         33
  Depreciation and amortization                         40           43       47         46
  Fuel                                                   7           13       11         17
  Maintenance and repairs                               26           26       28         30
  Intercompany charges                                 115          119      124        124
  Other                                                105          137      132        128
                                                       926        1,039    1,051      1,060

Operating Income                                      $ 147       $ 135    $ 149      $ 173




SELECTED STATISTICS

Operating Margin                                     13.7%       11.5%    12.4%       14.0%




Unaudited. Differences may result due to rounding.


                                                                                              FedEx Historical Stat Book / 25
                                   FedEx Ground Annual Shipment Statistics
                                             FY 1998 – FY 2005


                                                     FY 1998   FY 1999   FY 2000   FY 2001   FY 2002   FY 2003   FY 2004   FY 2005
Total Package Volume (000s)                          339,504   350,501   366,315   386,155   443,912   546,313   580,459   667,904
Average Daily Package Volume (000s)                    1,326     1,385     1,442     1,520     1,755     2,168     2,285     2,609
Composite Yield                                        $5.04     $5.36     $5.55     $5.79     $6.11     $6.25     $6.48     $6.68

Average Daily YOY Volume Growth Rate                   18.3%      4.4%      4.1%      5.4%     15.5%     23.5%      5.4%     14.2%
OPERATING WEEKDAYS                                      256       253       254       254       253       252       254       256




Unaudited. Differences may result due to rounding.


26 / FedEx Historical Stat Book
                                  FedEx Ground Quarterly Shipment Statistics
                                             FY 1998 – FY 2005
                                                             FY 1998                                      FY 1999
                                                 FIRST   SECOND   THIRD FOURTH                FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER              QUARTER QUARTER QUARTER QUARTER

Total Package Volume (000s)                           71,422    83,204   100,309    84,569     83,886    90,756     84,572      91,286
Average Daily Package Volume (000s)                    1,231     1,410     1,337     1,321      1,311     1,464      1,364       1,404
Yield                                                  $5.00     $5.05     $4.94     $5.17      $5.25     $5.30      $5.38        $5.49
Avg Daily YOY Package Growth Rate                      21.5%     21.3%     18.3%     12.7%       6.4%      3.8%        2.0%        6.3%
OPERATING WEEKDAYS                                       58        59        75        64          64       62          62          65


                                                             FY 2000                                      FY 2001
                                                 FIRST   SECOND   THIRD FOURTH                FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER              QUARTER QUARTER QUARTER QUARTER

Total Package Volume (000s)                           86,004    95,559    87,744    97,009     95,800   102,195     90,807      97,353
Average Daily Package Volume (000s)                    1,365     1,541     1,415     1,448      1,452     1,648      1,441       1,545
Yield                                                  $5.53     $5.45     $5.54     $5.66      $5.67     $5.69      $5.82       $5.99
Avg Daily YOY Package Growth Rate                       4.2%      5.3%      3.8%      3.1%       6.3%      6.9%        1.8%        6.7%
OPERATING WEEKDAYS                                       63        62        62        67         66        62          63          63


                                                             FY 2002                                      FY 2003
                                                 FIRST   SECOND   THIRD FOURTH                FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER              QUARTER QUARTER QUARTER QUARTER

Total Package Volume (000s)                          102,252   113,238   108,465   119,957    134,325   141,439    134,579     135,970
Average Daily Package Volume (000s)                    1,573     1,826     1,746     1,874      2,099     2,281      2,171       2,125
Yield                                                  $6.10     $5.98     $6.16     $6.19      $6.15     $6.10      $6.27       $6.47
Avg Daily YOY Package Growth Rate                       8.4%     10.8%     21.4%     21.3%      33.4%     24.9%      24.1%        13.3%
OPERATING WEEKDAYS                                       65        62        62        64         64        62          62          64


                                                             FY 2004                                      FY 2005
                                                 FIRST   SECOND   THIRD FOURTH                FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER              QUARTER QUARTER QUARTER QUARTER

Total Package Volume (000s)                          135,400   147,536   142,345   155,178    159,058   171,675    167,580     169,650
Average Daily Package Volume (000s)                    2,116     2,342     2,296     2,387      2,447     2,725      2,660       2,610
Yield                                                  $6.44     $6.37     $6.52     $6.59      $6.54     $6.48      $6.79       $6.91
Avg Daily YOY Package Growth Rate                       0.8%      2.7%      5.8%     12.4%      15.6%     16.4%      15.9%         9.3%
OPERATING WEEKDAYS                                       64        63        62        65         65        63           63          65




Unaudited. Differences may result due to rounding.


                                                                                                         FedEx Historical Stat Book / 27
     FedEx Freight Segment Annual Consolidated Statements of Income
                           FY 2002 – FY 2005
Years ended May 31
In millions


                                                                                                   FY 2002               FY 2003               FY 2004       FY 2005
FINANCIAL RESULTS

Revenues                                                                                              $2,253                $2,443                $2,689      $3,217

Operating Expenses:
  Salaries and employee benefits                                                                        1,218                 1,303                1,427       1,650
  Purchased transportation                                                                                197                   224                  254         315
  Rentals                                                                                                 101                   105                  100          99
  Depreciation and amortization                                                                            91                    88                   92         102
       1
  Fuel                                                                                                    133                   154                  172         257
  Maintenance and repairs                                                                                  91                   115                  116         128
  Intercompany charges                                                                                     13                    17                   21          26
  Other1                                                                                                  224                   244                  263         286
                                                                                                        2,068                 2,250                2,445       2,863

Operating Income                                                                                        $ 185                 $ 193                $ 244       $ 354




SELECTED STATISTICS

Operating Margin                                                                                        8.2%                  7.9%                  9.1%       11.0%




1 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,
    the inception of the FedEx Freight segment.


Unaudited. Differences may result due to rounding.


28 / FedEx Historical Stat Book
       FedEx Freight Segment Quarterly Consolidated Statements of Income
                              FY 2001 – FY 2002
Years ended May 31
In millions
                                                                        FY 2001                                                               FY 2002
                                                  FIRST            SECOND     THIRD 1               FOURTH              FIRST            SECOND     THIRD           FOURTH
                                                 QUARTER          QUARTER QUARTER                   QUARTER            QUARTER          QUARTER QUARTER             QUARTER
FINANCIAL RESULTS

Revenues                                                                                   $415              $578              $588           $565           $505       $595

Operating Expenses:
  Salaries and employee benefits                                                             208              303                310           300            287           321
  Purchased transportation                                                                    45               52                 53            53             41            50
  Rentals and landing fees                                                                    22               26                 25            25             26            25
  Depreciation and amortization                                                               20               30                 21            23             25            22
  Fuel2                                                                                       32               40                 37            34             28            34
  Maintenance and repairs                                                                     15               24                 23            22             20            26
  Intercompany charges                                                                         1                –                  3             3              3             4
  Other2                                                                                      50               64                 61            50             53            60
                                                                                             393              539                533           510            483           542

Operating Income                                                                           $ 22              $ 39              $ 55           $ 55           $ 22       $ 53




SELECTED STATISTICS

Operating Margin                                                                           5.3%             6.7%               9.4%          9.7%            4.4%      8.9%




1 - Includes three months of operations for FedEx Freight West and two months of operations for FedEx Freight East (January and February).
2 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,
    the inception of the FedEx Freight segment.


Unaudited. Differences may result due to rounding.


                                                                                                                                             FedEx Historical Stat Book /   29
       FedEx Freight Segment Quarterly Consolidated Statements of Income
                              FY 2003 – FY 2004
Years ended May 31
In millions
                                                                      FY 2003                                                              FY 2004
                                                 FIRST           SECOND     THIRD                 FOURTH              FIRST           SECOND     THIRD              FOURTH
                                                QUARTER         QUARTER QUARTER                   QUARTER            QUARTER         QUARTER QUARTER                QUARTER
FINANCIAL RESULTS

Revenues                                                $615             $634             $568            $626               $637             $664           $630       $758

Operating Expenses:
  Salaries and employee benefits                         328              329              313              333               340              345            346        396
  Purchased transportation                                57               62               51               54                56               64             59         75
  Rentals and landing fees                                26               29               25               25                24               25             25         26
  Depreciation and amortization                           23               20               22               23                21               24             24         23
  Fuel1                                                   35               38               39               42                39               39             43         51
  Maintenance and repairs                                 28               31               27               29                27               29             28         32
  Intercompany charges                                     5                4                5                3                 6                4              5          6
  Other1                                                  59               59               58               68                63               68             63         69
                                                         561              572              540              577               576              598            593        678

Operating Income                                        $ 54             $ 62             $ 28            $ 49               $ 61             $ 66           $ 37       $ 80




SELECTED STATISTICS

Operating Margin                                       8.8%             9.8%             4.9%             7.8%              9.6%            10.0%            5.9%      10.6%




1 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,
    the inception of the FedEx Freight segment.



Unaudited. Differences may result due to rounding.


30 / FedEx Historical Stat Book
       FedEx Freight Segment Quarterly Consolidated Statements of Income
                                  FY 2005
Years ended May 31
In millions
                                                                      FY 2005
                                                 FIRST           SECOND     THIRD                 FOURTH
                                                QUARTER         QUARTER QUARTER                   QUARTER
FINANCIAL RESULTS

Revenues                                                $807             $820             $747            $843

Operating Expenses:
  Salaries and employee benefits                         410              406              404              430
  Purchased transportation                                84               88               71               72
  Rentals and landing fees                                25               26               25               23
  Depreciation and amortization                           24               26               25               27
  Fuel1                                                   54               65               61               77
  Maintenance and repairs                                 31               31               33               33
  Intercompany charges                                     6                7                6                7
  Other1                                                  70               69               68               79
                                                         704              718              693              748

Operating Income                                        $103             $102             $ 54            $ 95




SELECTED STATISTICS

Operating Margin                                      12.8%            12.5%             7.2%            11.3%




1 - Beginning Q2 FY05, certain FedEx Freight expenses have been reclassified from Other Expense to Fuel Expense. Reclassifications extend back to Q3 FY01,
    the inception of the FedEx Freight segment.



Unaudited. Differences may result due to rounding.


                                                                                                                                            FedEx Historical Stat Book /   31
                        FedEx Freight Annual LTL Shipment Statistics
                                     FY 2002 – FY 2005


                                                     FY 2002   FY 2003   FY 2004   FY 2005
Shipments Per Day                                    56,000    56,403    57,702    63,358
Weight Per Shipment                                   1,114     1,114     1,127     1,132
Revenue/CWT                                          $12.41    $13.40    $14.23    $15.48
Avg Daily YOY Shipment Growth Rate                               0.7%      2.3%      9.8%
OPERATING WEEKDAYS                                      253       252       253       254




Unaudited. Differences may result due to rounding.


32 / FedEx Historical Stat Book
                             FedEx Freight Quarterly LTL Shipment Statistics
                                           FY 2001 – FY 2005
                                                             FY 2001                                                           FY 2002
                                                                      1
                                                 FIRST   SECOND THIRD   FOURTH                                     FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER                                   QUARTER QUARTER QUARTER QUARTER

Shipments Per Day                                                                    54,176          57,198            57,367       56,284     52,585       57,568
Weight Per Shipment                                                                    1,132          1,133              1,120       1,112       1,108       1,116
Revenue/CWT                                                                          $11.80          $11.84            $12.23       $12.55     $12.39       $12.50

Avg Daily YOY Shipment Growth Rate                                                                                                              (2.9%)       0.6%
OPERATING WEEKDAYS                                                                        42              65                   65      62          61           65




                                                             FY 2003                                                           FY 2004
                                                 FIRST   SECOND   THIRD FOURTH                                     FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER                                   QUARTER QUARTER QUARTER QUARTER

Shipments Per Day                                    58,155          58,973          52,607          55,838            55,831       57,675     54,957       62,188
Weight Per Shipment                                    1,120           1,104           1,110          1,120              1,118       1,119       1,121       1,146
Revenue/CWT                                          $12.80          $13.55          $13.59          $13.69            $13.97       $14.32     $14.35       $14.28

Avg Daily YOY Shipment Growth Rate                     1.4%            4.8%            0.0%           (3.0%)            (4.0%)      (2.2%)       4.5%       11.4%
OPERATING WEEKDAYS                                         64             62              62              64                   64      62          62           65




                                                             FY 2005                                                           FY 2006
                                                 FIRST   SECOND   THIRD FOURTH                                     FIRST   SECOND   THIRD FOURTH
                                                QUARTER QUARTER QUARTER QUARTER                                   QUARTER QUARTER QUARTER QUARTER

Shipments Per Day                                    64,397          65,104          60,051          63,810            65,321       68,266     64,171       69,185
Weight Per Shipment                                    1,128           1,130           1,129          1,142              1,132       1,161       1,141       1,137
Revenue/CWT                                          $14.98          $15.55          $15.58          $15.82            $16.55       $16.80     $16.74       $17.25

Avg Daily YOY Shipment Growth Rate                    15.3%           12.9%            9.3%            2.6%              1.4%        4.9%        6.9%        8.4%
OPERATING WEEKDAYS                                         65             62              62              65                   65      62          62           65




1 - Based on the portion of the quarter that included both FedEx Freight East and FedEx Freight West (January and February).

Unaudited. Differences may result due to rounding.


                                                                                                                                    FedEx Historical Stat Book / 33
      FedEx Kinko's Segment Quarterly Consolidated Statements of Income
                             FY 2004 – FY 2005
Years ended May 31
In millions
                                                                         FY 2004                                                              FY 2005
                                                   FIRST            SECOND     THIRD                FOURTH              FIRST            SECOND     THIRD                 FOURTH
                                                  QUARTER          QUARTER QUARTER                  QUARTER            QUARTER          QUARTER QUARTER                   QUARTER
FINANCIAL RESULTS

Revenues                                                                                                    $521               $490             $524             $499         $553

Operating Expenses:
  Salaries and employee benefits                                                                              185               182               186              185         189
  Rentals1                                                                                                    115               102               107              103         100
  Depreciation and amortization                                                                                33                32                32               36          38
  Maintenance and repairs1                                                                                      9                17                17               17          19
  Intercompany charges                                                                                          –                 3                 3               (1)          1
  Other operating expenses:1
    Supplies, including paper and toner                                                                        69                64                71               70          73
    Other                                                                                                      71                71                79               78          92
                                                                                                              482               471               495              488         512

Operating Income                                                                                            $ 39               $ 19             $ 29             $ 11         $ 41




SELECTED STATISTICS

Operating Margin                                                                                            7.5%               3.8%             5.7%             2.2%        7.4%




1 - Certain Kinko's expenses have been reclassified for Q1 and Q2 of fiscal 2005.

Note: The FedEx Kinko's segment was formed in the fourth quarter of fiscal 2004. Results from the February 12, 2004 date of acquisition through February 29, 2004 are
      included in 'Eliminations & other' on pages 4 and 8 of this stat book (approximately $100 million of revenue and $6 million of operating income).
                                                                                                                                                      .




Unaudited. Differences may result due to rounding.


34 / FedEx Historical Stat Book

								
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